HR Finance Management Coursework Research Paper Essay

HR Finance
Student’s Name
Institutional Affiliation

HR Finance
Answer 1
The balance sheet is a vital document that shows a firm’s liabilities, stockholder’s equity, and assets at a particular time. In particular, it is sometimes called the snapshot of a company’s financial position since it reveals where a business stands when it comes to the available resources (Queensland Government, 2020). In other words, a balance sheet captures the financial position of a firm and provide relevant information about a company’s solvency.
Answer 2
An income statement uses the matching principle to report expenses and revenues for a specific period. Specifically, it facilitates the reporting of an expense on an income statement at a time when revenues are generated. The matching principle uses adjusting entries and accrual accounting. For instance, if a particular expense is not tied to revenue directly, it is reported on an income statement at the end of a financial period.
Answer 3
Cash flow analysis is critical to a firm’s success since it portrays where the cash is generated and where it is spent in a particular period either annually or quarterly. Indeed, it analyzes the long-term solvency and liquidity of a firm. Cash flow analysis uses cash accounting while an income statement and balance sheet apply the accr...