Document Type

Article

Publication Date

1922

Abstract

The two basic reports which the chief executives of any business enterprise should receive currently are: 1. The Balance Sheet, and 2. The Statement of Profit and Loss. The Balance Sheet represents the financial condition of a business at a given date, and the Statement of Profit and Loss explains the change in net worth resulting from the industrial or business operations during a given period. The Balance Sheet and the Statement of Profit and Loss are prepared not only for those who operate the business, but also for those who own it. These statements are useful from at least three viewpoints, in each of which the executives should be interested: 1. Efficiency of Operations and Management. 2. Credit Risk. 3. Investment Standpoint.

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