Describe the major purpose of financial statements.

Prior to beginning work on this discussion, please read Chapters 12, 13, 14 and 15 in our textbook and the Driving growth article (PDF Version). Your initial post should be 250 to 300 words.

It is important for non-financial managers to be able to identify financial statements and understand their purpose. For your initial response, you will need to discuss the following:

  • Name the four basic financial statements.
  • Choose one of the four and evaluate its purpose for the organization, including its role in the budgeting process.
  • Explain what type of information can be derived from each statement.
  • Describe the major purpose of financial statements.

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