What you’ll learn to do: identify three key financial statements, the components of each statement, and their primary uses

In order to effectively communicate the financial information about a business, accounting relies upon three key financial statements. Each of the statements contains unique but interconnected information that, taken together, creates a picture of the financial health of the organization. In this section you will learn about the Balance Sheet, Income Statement, and Statement of Owner’s Equity. By examining the components of each you will see the connections between the statements and be able to use this information to conduct a break-even analysis (which will help you determine the point at which your business becomes profitable).

LEARNING ACTIVITIES

The learning activities for this section include:

• Video: Financial Statements: An Introduction
• Reading: Understanding Financial Statements
• Video: Financial Statements: Interconnectivity
• Self Check: Key Financial Statements

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.