How would you respond in 400 words

It is more than important to know where an organizations finances are and how they are being utilized. There needs to be ways to access the information quick and see if the numbers are where they need to be. There are a few different ways to access this type of information. Three of the key financial statements an organization can use to do this are the income statement, the balance sheet, and the statement of cash flows.            An income statement is a financial statement that reports a company’s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period. (Investopedia, 2018)            A balance sheet reports a company’s assets, liabilities and shareholders’ equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. (Investopedia, 2018)            A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period. (Investopedia, 2018)            The documents listed above are the best way for an organization to keep up with their assets, and where their finances are going. If these documents are utilized effectively they can only enhance the efficiency of the company and make the company operate at the peak in which it was intended. Since these documents are also broken down into given periods, it would easy to narrow down specific time frames in which the organizations is doing poorly, but also when the organization is thriving. If these tools are used to their capacity, an organization will only continue to grow and thrive.

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