(Top QUALITY 2024/2025 EXAM REVIEW)/ WGU C201 Business Acumen Chapter 15 & 16: Accounting and Financial Statements, questions and answers, rated A+

WGU C201 Business Acumen Chapter 15 & 16: Accounting and Financial Statements, questions and answers, rated A+ Balance Sheet - -Snapshot - permanent statement, amounts are carried over from year to year, shows the firm's financial position on a particular date. Close out at end of year. Income Statement - -Video - indicates the flow of resources that reveals performance over a specific period. Also called a profit and loss statement. Statement of Owners Equity - -Shows changes in equity from the year end of one year to the next. Begins with the amount of owner's equity shown on last statement of owner's equity, add profit to the retained earnings, subtract dividends. Also, shares sold and equity sold. Shares we bought back. Resulting in the ending balance. Statement of Cash Flows - -Tracks the flow of cash generated and spent over a period of time. Including operation activities (day to day operations) Financing activities (obtaining or paying for outside financing) Investing activities (long term assets i.e. building and equipment). Also includes depreciation recorded as a noncash expense. Reducing the value of an asset over time. Public companies are required to prepare these. Provide to creditors and investors with relevant information about cash receipts and cash payments. The only permanent financial statement. - -Balance Sheet This statement is used to show cash payment and cash receipts for day to day operations. - - Statement of Cash Flows Information from balance sheet and income statement are used in this statement to show the change in equity from one year to the next. - -Statement of Owner's Equit