Small business disscussion | Economics homework help

 

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Due tomorrow noon

 

Reading assignments attached

 

In our readings for week 1, focus, knowledge and application of financial management systems was identified as one of the main reasons for small business failures. Our Learning Activity for this week will focus on the understanding of Financial Statements.

 

Learning Activity

 

Step 1 – From our readings identify the main sections of the Balance Sheet and provide an explanation of each.  Explain why it is important for a business owner to understand their Balance Sheet.

Step 2 – From our readings identify the main sections of the Income Statement and provide an explanation of each.  Explain why it is important for a business owner to understand their Income Statement.

Step 3 – Explain why it is important for a business owner to review each of these statements on a monthly, quarterly, and annual basis.  What should the review of the Balance Sheet and the Income Statement be focused on?  Why is the review of financial ratios important?

 

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