This is an effective case MBA module dedicated to the process of accounting and preparation of the three basic financial statements, it is also an excellent example of the exam. A simple scheme of the three main financial statements (balance sheet, income statement and statement of cash flows) are presented and used to collect, organize, and communicate the consequences of a number of common business activities. The manager must understand (1) of the financial scheme suffering, (2) in any direction (ie increase or decrease) and (3) the fact that the dollar amount, all the while keeping the basic equation Assets = Liabilities + Equity in balance. The case also provides students the opportunity to prepare a simple cash flow using two consecutive balance sheets. Finally, it provides an opportunity for students to work in the opposite direction from the balance sheet and statement of cash flows in order to process the beginning balance of the year. "Hide
by Mark E. Haskins Source: Darden School of Business 9 pages. Publication Date: July 28, 2009. Prod. #: UV1770-PDF-ENG
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