Short one to two page essay:
Knowing how to classify accounts is a key piece of accounting knowledge. Reading a financial statement in today’s business world is not limited to accounting personnel. Anyone involved with making business decisions must have a firm grasp of the parts of financial statements. By reviewing published financial statements of one of your favorite companies, (i.e. Amazon, Starbucks, etc.) practice identifying the various classifications, such as current assets; current liabilities; and property, plant, and equipment. Then identify and share three observations or assumptions you can make about the company from your review. Public companies must publicly file financial statements with the Securities and Exchange Commission (SEC). You can find the filings on the EDGAR website at www.sec.gov. You may also find an organization’s financial statements on their company website under investor relations.
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