1. Business Administration & Management Mr. Bernstein Financial Statements, pp 409-415 May 22, 2013

2. Business Administration & Management Mr. Bernstein 3 Primary Financial Statements 2 Income Statement Ledger Balances Cash Flow Statement Balance Sheet

3. Business Administration & Management Mr. Bernstein Accounting Systems Businesses keep score GAAP: Generally Accepted Accounting Principles The Accounting Equation: Assets = Liabilities + Owner’s Equity Assets are anything of value (ie cash, equipment, accounts receivable) Liabilities are anything the business owes Owner’s Equity is the net worth of the business (Assets – Liabilities = Owner’s Equity) 3

4. Business Administration & Management Mr. Bernstein 3 Primary Financial Statements Income Statement reports Profit/Loss Balance Sheet reports Assets & Liabilities Cash Flow Statement reports cash receipts and disbursements 4