"Hi my name is Steven and today I'm going to talk about financial statements and how fun they are! Financial Statements are business papers that explain what a business is doing with it's money and resources during what is called an accounting period, which is just a fancy phrase for when a business reports the overall condition of the company."

"Income Statements, Balance Sheets, and Statements of Cash Flow. What?? What does that even mean? Is that some sort of foreign language or something? Those three things happen to be extremely important in everyday life, in the business world." 

"First of all, we should go over what an income statement is. The meaning of an income statement is a business statement that tells how much money a business gains or losses during an accounting period."

"Take a restaurant for example. A restaurant will complete an income statement by recording what they have bought to make the food, pay the workers, and rent for the building. The restaurant will also record how much money they make from selling their food. Those are the basics of what an income statement is."

"Secondly, we have the balance sheet. A balance sheet is a report that explains what a business has, what risk they have, what a business owns, and how much money they put into the business."

“Using a Restaurant as an example. A restaurant's assets are cooking appliances and workers. What a restaurant risks is if a worker hurts themselves or if a worker does something wrong to a customer which can create problems. The owner of the restaurant might put a lot of his own money into the restaurant as well. All of those things would go on the restaurant's balance sheet as assets or liabilities.”