ACC 561 Week 1 paper

1118 WordsDec 14, 20135 Pages
Company Selection I have selected Apple as the company that I will be following financially for the duration of Accounting 561. Not only am I a passionate Apple user, I also believe in how the company develops, creates, and markets their product lines for consumer use. They have created products that are so complex at their core with an extremely simple user experience, which has been nothing short of remarkable to watch from the time I was a child through adulthood. I look forward to studying the company and their financials further as we dive deeper into Accounting 561. Financial Statements There are four major financial statements that investors, creditors, accountants, CEO’s, and the like study when looking at the financial…show more content…
Which Financial Statement(s) Would Be Of Most Interest To Creditors? As a creditor or lender it is of utmost importance that they have all the information necessary to make a sound decision as to whether or not they will lend money to a company. The retained earnings statement, balance sheet, and statement of cash flows will paint that picture for a creditor due to the fact that they will see where the company’s money is being earned and spent through the statement of cash flows, they will see how they are either paying out dividends to investors or reinvesting the money into the business through the retained earning statements, and how solvent the business is by looking at the balance sheet. Creditors take the biggest risk when lending money due to the fact that they have all the skin in the game and are taking a calculated risk. The review of the three aforementioned financial statements seem to be the clearest way to come to a conclusion about whether or not a creditor should lend a company money. Which Financial Statement(s) Would Be Of Most Interest To Management? As a CEO or a member of the management team it is important to have a very clear understanding of all the financial documents that are available to them. It is not only their duty but their responsibility to know these documents and finances extremely well because

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