Who may be interested in an entity’s financial statements? Mention two potentially interested readers (individuals, groups, or organizations) of financial statements and explain how the information may be useful to them.
Do research on the Internet and show references for the information. Comments should be in your own words. Do not forget to interact with other participants by following up with additional ideas or examples.
Let us first view a short video about a simple income statement.
Wall Street Survivor. (2012, November 30). Introduction to income [Video File]. Retrieved from https://www.youtube.com/watch?v=2RupCSFcY7w
Next, view the video below and read a succinct explanation for an introduction to the income statement.
The Motley Fool. (n.d.). Income Statement. Retrieved from http://wiki.fool.com/Income_statement
It is now time for a somewhat more comprehensive overview of an income statement. At this time it is sufficient to review the section about the income statement.
Baruch College’s Guide to Financial Statements. [Interactive Presentation]. (2008). Retrieved from http://www.baruch.cuny.edu/tutorials/statements/view_tutorial.html
The Securities and Exchange Commission (SEC) also offers an excellent Beginner’s Guide to Fianancial Statements that provides a good introduction.
Accounting Coach. (n.d.). Dictionary of Accounting Terms. Retrieved from http://www.accountingcoach.com/terms
Walther, L. M. (2017). Principles of accounting: A complete online text. Retrieved from http://www.principlesofaccounting.com/ . Note that there are also many useful videos associated with Dr. Walther’s textbook.