Explain how these statements are used in different ways by investors, lenders, and corporate managers when making decisions.

Discussion 1 – week 1 – financial mgmt – due by 10pm cst today

The balance sheet and the income statement are two financial documents that provide a snapshot of an organization’s financial standing at a certain point in time. These document are typically used by investors, lenders, and corporate managers when making decisions. Investors will use these documents to make informed decisions on investing into the company or stock, as well as understanding their current holdings. Lenders may review these statements to determine whether or not to extend credit to the business. Corporate managers who have access to such documents can make better decision on how best allocate resources for maximum return on investments.

I do not have any direct experience working with a balance sheet or income statement, however I understand its importance in making prudent financial decisions both personally and professionally. Knowing what is displayed within each document allows me plan out my expenses according funds currently available while also considering risks associated with different types investments should decide pursue them course action going forward future.