There are four key components of a company's financial statements: Income Statement, Statement of Equity/Capital (Changes in Capital/Equity), Balance Sheet (Statement of Financial Position), and Cashflow Statement. This course will be teaching about the Income Statement, Statement of Equity, and the Balance Sheet. The Cashflow Statement will be taught to you in your Managerial Accounting course (yes, more accounting to come). While each component of the financial statements play an intricate role in the story telling of a company's position and performance, there has been a long outstanding debate as to which statement is the most important when critiquing a company. For this discussion post you will be placed into a group and will be given one of the three statements to represent (Income Statement, Statement of Equity, and Balance Sheet). For the initial post, your group will answer the following questions for your particular statement:

What are some of the key measurements or ratios used to evaluate performance using this statement?

Answer rating: 100% (QA)

As a representative of the Income Statement some key measurements and ratios used to evaluate perfor... View the full answer