Explain how these statements are used in different ways by investors, lenders, and corporate managers when making decisions.

Discussion 1 – week 1 – financial mgmt – due by 10pm cst today

The balance sheet and the income statement are two financial documents that provide a snapshot of an organization’s financial standing at a certain point in time. This document is used by corporate managers and investors as well as lenders to help them make financial decisions. These documents will be used by investors to help them make educated decisions about investing in the stock or company, and also understand their existing holdings. The statements can be reviewed by potential lenders in order to assess whether they are willing to provide credit. Access to these documents allows corporate managers to make informed decisions about how they allocate resources in order for the greatest return.

Although I don’t have direct experience with income statements or balance sheets, I am familiar enough to understand the importance of these documents in order to make prudent financial decisions personally and professionally. I can plan my expenses using the funds available, while considering potential risks and taking appropriate action if necessary.

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