Assignment
a. Why is it important to understand financial management in order to be an effective manager? Why does this process being with the balance sheet and P&L statement?
b. What does the balance sheet tell a manger about her business? List three things the balance sheet does not tell a manager about her business.
c. What does the P&L statement tell a manager about his business? List three things the P&L statement does not tell a manager about his business.
d. What is a fiscal year? Explain why it may not coincide with a calendar year.
e. What is the accounting equation? How is it used to develop a balance sheet?
f. Explain when a business is solvent and insolvent. Develop an example where an agribusiness may be solvent at one point in the year and insolvent in another.
g. What is the difference between current assets and fixed assets?
h. What is the difference between a current and a long-term liability?
i. What is owner's equity? How is it different from net worth?
j. Why are fixed assets depreciated and current assets are not?
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.