For what business questions might you consult a balance sheet?

 

Business Math, Ch. 21

Balance Sheet

In week five, you are going to be given a list of items and asked to create a balance sheet and an income statement.  This is a task that many of you have never undertaken, so I wanted to point out this week that you’ll need to be careful to understand what items are on a balance sheet and what items are on an income statement.  In your list for your week five project, each item belongs on either the balance sheet or the income statement, but not both. Let’s think about these two financial statements and how we should use them…

 

For what business questions might you consult a balance sheet?  For business questions might you consult an income statement?

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