Managers within the firm, as well as the firm’s owners and lenders, keep track of the firm’s performance by reviewing its financial statements:
income statement
balance sheet
statement of cash flows
PART 1:
In 675-700 words (not including title page or references) and in an APA7 formatted with an Introduction and Conclusion, explain the following questions. Do not include the questions verbatim in your responses or as headings. Use the template provided.
What is the purpose of the income statement? Identify and describe the major types of expenses that are shown on the typical income statement.
What is the purpose of the balance sheet? Identify and describe the major types of assets and the claims of creditors and owners shown on the typical balance sheet.
What are the three different accounts that comprise the owners’ equity (also known as stockholders' equity) section on a typical corporate balance sheet? Describe each account.
What is a statement of cash flows? Describe the three standard sections contained in a statement of cash flows.
PART 2:
Complete both the balance sheet and income statement exercise tabs in this Excel file and submit it as a file. Note: the file is auto-submitted to Turnitin and will result in a high score. Please disregard the score.
Citations and References: A credible source will cite its own sources. Look for a bibliography, footnotes, or in-text citations. This allows you to verify the claims and explore the topic further. The presence of citations indicates that the author has done their research and that their claims are supported by external evidence.
Domain Name/URL: The URL can provide clues about the source's nature. Domains like .edu (educational), .gov (government), and .org (non-profit) are generally more reliable than commercial domains like .com, which may prioritize profit over accuracy. This element helps quickly categorize the source's purpose and potential credibility.
Quality of Writing and Presentation: Credible sources are typically well-written, free of spelling and grammar errors, and presented in a professional manner. While not a definitive indicator, poor writing can signal a lack of professionalism and may suggest the content hasn't been through a proper editorial process. This criterion serves as a quick proxy for professionalism and attention to detail.
Peer Review: For academic articles, check if the source has been peer-reviewed. Peer review is a process where experts in the same field critically evaluate a manuscript to ensure its quality and validity before publication. This process is a gold standard for academic credibility and helps filter out flawed research.
Verification and Cross-referencing: Can you find the same information presented in other reliable sources? If a claim is only found on one obscure blog, it's likely not credible. If multiple reputable sources report the same fact, it's more likely to be true. This is a crucial step for verifying the accuracy of a claim and avoiding misinformation.
Tone and Language: A credible source uses a professional, objective tone. Be wary of sources that use overly emotional language, sensational headlines, or personal attacks. These can be indicators of an attempt to persuade or manipulate, rather than inform. The tone and language reveal the source's intent—to educate or to sway opinion.
Advertising: The number and type of ads on a website can be a red flag. A site cluttered with pop-ups, clickbait, or highly commercial ads might be more focused on generating revenue than providing accurate information. The presence of excessive advertising can signal a lack of editorial independence and a focus on commercial gain.
Sample Answer
Criteria for Determining Source Credibility
Author's Authority and Expertise: Check the author's credentials, education, and professional background. An author with a Ph.D. in the subject, a position at a respected university, or a long history of publications in the field is more likely to be a credible source. This is important because it establishes the author's knowledge and experience, ensuring the information presented isn't from an amateur or someone unqualified to speak on the topic.
Publisher/Website's Reputation: Consider the reputation of the publication or website hosting the information. Is it a peer-reviewed academic journal, a well-known newspaper like The New York Times, or a university website? Reputable publishers often have rigorous fact-checking and editorial processes. This criterion is vital because it speaks to the source's commitment to accuracy and journalistic integrity.
Bias and Objectivity: Look for potential biases. Does the author or publication have a vested interest in promoting a specific viewpoint? For example, an article about the benefits of a product written by the company that makes it is likely biased. A source should present a balanced view, acknowledging different perspectives. Evaluating for bias is critical to ensure the information isn't manipulated or one-sided.
Date of Publication: Check how current the information is. For many fields, especially science and technology, a recent source is more credible than an old one because knowledge evolves rapidly. Using an outdated source could lead to incorrect conclusions. The publication date is essential for ensuring the information is timely and reflects the