Explain the Three Basic Financial Reports That a Business Uses

question 133

Essay

Explain the three basic financial reports that a business uses in building a financial statement: the balance sheet,the income statement,and the statement of cash flows.What information is contained in each,what is their value to the small business owner,and how are they used to build financial statements?

---

Definitions:

Custom

Established norms and customary practices unique to a particular culture, location, or era, that dictate the conventional manner of conduct or performance.

Consumer Behaviour

The study of how individual consumers, groups, or organizations select, buy, use, and dispose goods, services, ideas, or experiences.

Culture

A complex system of values, traditions, symbols, and practices shared by a group of people that collectively form their way of life.

Crescive Norms

Unwritten rules that are discovered through interaction with a culture or society, influencing behavior and expectations.