Sarah McAllister, Jolie Richards, Lydia Martin 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