Understanding financial statements are key to the success of any organization. How do financial statements relate...

Understanding financial statements are key to the success of any organization. How do financial statements relate to the mission statement of an organization? Explain how they aid in the mission of the organization.

Solutions

Expert Solution

Mission Statement is short statement which describes the short term and long term goal of the organization. It includes their target customer type, type of operation, Geographical region of operation etc.

Financial includes the Balance Sheet, Income Statement, Cash Flow Statement. Here Income Statement shows profit and loss for current year, cash flow statement shows the current cash position of the company and Balance sheet reflects the debt position, cash position , current asset, current liability, equity position cumulatively for the years company is existing.

Hence, income statement and cash flow statement shows whether company is able to achieve it's short term goal to the mission statement.

Whereas balance sheet shows where company is standing till date from inception i.e.long term goal of the company. In short, mission statement describes what the company want to achieve and financial statements shows what the organization has achieved so far.

jeff jeffy answered 3 weeks ago

Next > < Previous

Related Solutions

Financial reporting is critical to the success of any organization because this is how managers and...

Financial reporting is critical to the success of any organization because this is how managers and other stakeholders evaluate the sustainability and profitability of an organization. The healthcare industry accounts for nearly 20% of the US GDP as of 2018 (BEA, 2019). While there is guidance for financial reporting to the respective government agencies, there is no consistency in the development of financial reports among private healthcare organizations. Discuss the importance of consistent financial reports across all healthcare organizations. Support...

Understanding and properly utilizing debt is not only a key to success in business, it is...

Understanding and properly utilizing debt is not only a key to success in business, it is a key to success in life. Debt, also referred to as leverage, can be both a valuable tool and a recipe for disaster. Describe scenarios with both a proper use of debt and an inproper use of debt. Please be specific as well as realistic. Don’t describe a scenario that wouldn’t be possible in today’s environment (in other words, the days of no doc...

Describe and summarize the key financial statements used in a business organization. Explain three to five...

Describe and summarize the key financial statements used in a business organization. Explain three to five key financial ratios used to analyze a company.

Describe and summarize the key financial statements used in a business organization. Explain three to five...

Describe and summarize the key financial statements used in a business organization. Explain three to five key financial ratios used to analyze a company.

Describe and summarize the key financial statements used in a business organization. Explain three to five...

Describe and summarize the key financial statements used in a business organization. Explain three to five key financial ratios used to analyze a company.

Why are the principles of segregation and independent assortment key to understanding inheritance? How do these...

Why are the principles of segregation and independent assortment key to understanding inheritance? How do these principles differ from the theory of blending inheritance?

A key characteristic of useful financial information is understandability. How does this qualitative characteristic relate to...

A key characteristic of useful financial information is understandability. How does this qualitative characteristic relate to the background of the user of the information?

Why analyze financial ststements? As organization, how do finacial statements contribute to th decission making process?...

Why analyze financial ststements? As organization, how do finacial statements contribute to th decission making process? As an individual investor, how are financial statements helpful when making investment decissions? If you wanted to invest $1,000 in a soft drink company, and you narrow you chocie down betewwn Coke and Pepsi, where would look to find each company's respective financiall statements? Based on the most current information, which company would choose and why?

How do we reformat financial statements?

Understanding Financial Statements (11th Edition) 1.6 Explain the importance of the notes to the financial statements....

Understanding Financial Statements (11th Edition) 1.6 Explain the importance of the notes to the financial statements. 1.7 What causes an auditor’s report to be qualified? Adverse? A disclaimer of opinion? Unqualified with explanatory language? 1.8 Why is the management discussion and analysis useful to the financial analyst? 1.10 What are the intangible factors that are important in evaluating a company’s financial position and performance but are not available in the annual report?

Subjects