Financial Statements for a Partnership
Introduction of financial statements for a partnership set up as a merchandising business. Introduction of the four financial statements for a partnership. Introduction of the income statement for a partnership, the different sections of the income statement, the accounts to be included on the income statement and how to use the totals of the income statement to figure the appropriate component percentages for the business. Introduction of the Distribution of Net Income/Net Loss for each partner. Introduction of the Owner’s Equity Statement for a partnership. Introduction of the balance sheet for a partnership, the different sections of the balance sheet and the accounts to be included on the balance sheet. Discussion on how to use the information from the financial statements and how they are analyzed to help management determine the company’s financial position.