1. Financial Statements

2. Users of financial information

3. The Balance Sheet Equation ASSETS Current Fixed Other ASSETS Current Fixed Other Liabilities Current Long - Term Liabilities Current Long - Term Sharehold er’s equity

6. Fill in the blanks For a business enterprise, all the relevant financial information is presented in a structured format that is easy to understand. These are called ________. There are several important financial statements. A ________ shows a company's financial position. It includes ________ (anything that a company owns and which can be converted into cash) and ________ ( a company's debts and financial obligations). ________ assets are physical things, for example machines and property. ________ assets are not physical in nature, for example a company's reputation. A ________ statement (also called an income statement in the US) is a financial statement which summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. Intangible Financial StatementsBalance SheetProfit and Loss TangibleLiabilities

7. Balance Sheet Match the balance sheet items on the left to their definition on the right: 1. Accounts receivable A. Borrowed money which the company must pay back within a year. 2. Prepaid expenses B. The money owed to a business by its clients 3. Account payable C. Intangible assets like a company’s brand name and established relationships with its suppliers 4. Stock / Inventory D. Costs paid in advance such as rent and interest 5. Plant & Equipment E. The money a company has received from outside investors for its shares 6. Share capital F. The money owed by a business to its suppliers 7. Goodwill G. The goods and materials that a business holds for the purpose of resale 8. Short-term debt H. What a company owns and uses to produce goods, such as factory and machinery.