Financial & Pricing
Sarah McAllister, Jolie Richards, Lydia Martin
Accounting
~The action or process of keeping financial records
~Purpose is to provide information to different people
within the business to make informed economic decisions
Balance Sheets
~States the assets, liabilities, and capital of a business
at a particular point in time
~Details income and expenditures over a period of time
~Used to show current financial standing of the company
Balance Sheets
~Assets: property owned by a company that can be used
to settle debts, commitments, or legacies
~Liabilities: a debt or financial obligation
~Capital: wealth in the form of money or other assets by
a person or organization used with the purpose to start a
company
Net Worth
~The total assets minus total liabilities
~Defined in terms of liquidity, net assets, and liabilities
~Liquidity: the ability to convert an asset to money
quickly
~The strength of a business is determined by whether or
not the value of their assets is more than the value of
their liabilities
Annual Reports
~A summary of income and expenditures over the last
fiscal year
~Is issued to shareholders and other regulatory
organizations
~Balance sheets are often part of annual reports