Explain why a supervisor needs to understand their company's financial statements. What information can be gathered...

Explain why a supervisor needs to understand their company's financial statements. What information can be gathered from each financial statement?

Expert Solution

Supervisor can use financial statements as a tool to make decisions. Performance tracking can be done by the supervisor with the help of financial statements. Supervisors can measure the impact of their work on income of the company by understanding income statement. Balance Sheet , Income Statement and Cash Flow Statement are the main financial statements.

BALANCE SHEET

A picture of financial health of company is provided by the Balance Sheet. Assets , Liabilities and equity are listed in the Balance Sheet.

INCOME STATEMENT

Profit and loss account is another name for income statement. Revenues earned and expenses incurred are displayed by the income statement.

CASH FLOW STATEMENT

Inflow and Outflow of cash are displayed by the cash flow statement. Cash flow statement is divided into three parts. Operating activities, investing activities and financing activities are the three parts in which cash flow statement is divided.

ekkarill92 answered 7 months ago

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