FINANCIAL ACCOUNTING MBA – SAT 1:00PM-4:00PM

Activity 2 Beverly Jane M. Tecson

I. Research an example of financial statements of any company related to your

dream business.
I have attached a separate file of an example of a financial statement. The
example FS is from a Business Plan since I was not able to find a financial
statement of an existing business that is the same with my dream business
which is a Water Refilling Station
a. Describe the financial statements that you gathered.
The financial statement that I gathered is comprehensive enough, however,
there are a lot of notes that are reflected in the Income Statement, Statement of
Changes in Owner’s Equity, and Statement of Financial Position that are not
found in the spreadsheet.
All the materials and equipment needed to operate the business and project the
financial position of the business can be found in their financial statement.

2. How important are these documents?

These documents are necessary in order to know the financial position of the
business. It will serve as a basis for assessment on the things that needs to be
done and on identifying the areas of the business that needs to be improved.
3. What do you think are the vital characteristics that these financial statements
should possess?
These financial statements should be simple, relevant, comparable,
understandable, complete, accurate and reliable.
Material errors and bias must be avoided, and the information must not be
deceptive. As a result, the data should accurately depict transactions and other
events, reflect the underlying substance of those events, and prudently
represent estimates and uncertainties through correct disclosure.