Lesson Summary

You are now familiar with types of financial information generated by a company and the stakeholders who are interested in that information: internal parties, such as managers, and external parties, such as owners and creditors. You've also learned about the elements and basic structure of four financial statements: the balance sheet, income statement, statement of changes in owners’ equity, and statement of cash flows, which comprise management’s communication to the public about the company’s financial condition. In the next lesson, you will learn how financial information is recorded in the company’s accounting system.