Financial Statement Essay Example | Topics and Well Written Essays - 250 words

Financial Statement - Essay Example They are found in the Asset part of the balance sheet. These equipment purchases are regarded as long-term and are documented for many years (Kieso, Weygandt & Warfield, 2014). The financing activities on the other hand refer to the cash flow that is affected by the decreases or increases to equity. It simply means the quantity of cash flow affected by securing a loan or by paying down debt from a lending institution or an owner. Such activities are in the Equity and liability section of the balance sheet. Here, decreases and increases can be a bit deceiving if viewed at a bad or good perspective. This is the most important activity of the cash flow as it keeps the business going and informs the executive on what should be done on avoided for the continuity of the business. Disclosures to financial statements are vital as lenders use a variety of them from a private initiative statement when they need to determine whether the entity ought to get a loan; distinctive financial statements basing on the new overall accepted Accounting Standards for Private Enterprises (ASPE) may possibly meet those requirements. However, as financial statements are prepared for private enterprises, they must be in a way that they maintain the confidence and trust of lenders, thus additional disclosures may be advantageous in getting financing (Benjamin & Stanga,