DQ1:P Valuable Course Aspect and DQ2:Concepts of the Course - Essay Example

DQ1 The most valuable aspect of this was the knowledge I gained about financial ments. The four basic financial ments are the income statement, balance sheet, statement of retained earnings and the statement of cash flow (Quickmba, 2011). The financial statements are prepared annually and they are usually released within the contents of the firm’s annual report. I learned from the course that the income statement provides information regarding the profitability of the company. The balance sheet provides a statement of the financial position of the company at a particularly point in time.

The knowledge I obtained in regards to financial statements will benefit me a lot in my personal life. I plan on using what I learned about financial statements in order to evaluate potential investment opportunities in the stock market. It is very important for young people to start thinking about the future at a young age. Building a portfolio of stocks is a great retirement strategy. DQ2 A concept from this course that can be applied to a future work position is horizontal and vertical analysis.

One of my dreams is to become a manager in the future. Managers have to be able to analyze financial information well in order to make decision. The vertical and horizontal analysis techniques enable a person to determine how well a company is performing in financial terms. Another concept from the course that is very useful is the basic equation of accounting. This equation provides the logic needed to understand the balance sheet of a company. A third concept that can be very important in order to understand accounting is the accounting cycle.

This concept helps a person understand the steps that are required to create the end result of the cycle which is the preparation of the financial statements. References Quickmba.com (2011). The Four Financial Statements. Retrieved June 10, 2011 from http://www.quickmba.com/accounting/fin/statements/