Bus 100 Evaluating Financial Performance

Assignment 3: Evaluating Financial PerformanceAlexandra FoxProfessor Dan BaileyBUS 100 – Introduction to BusinessAugust 24, 2013 Accounting and Finance are two very important departments within an organization. It is vital for the Corner Café’ to focus on these two aspects of their business to ensure profitability and maintain a strong financial status. Having strong accounting and finance practices within their restaurant will help Chris and Erica have a better understanding of their financial performance and they will be able to manage their funds effectively. Accounting is a system for recognizing, organizing, analyzing, and reporting information about the financial transactions that affect an organization. In other words, accounting affects everyone associated with a company; including managers, stockholders, employees, creditors, suppliers, and Government agencies. Accountants are responsible for financial statements which provide stakeholders with the organizations financial condition and recent financial performance. This is vital information that top level managers need in order to evaluate where the company financially stands, and take action towards improving finances if necessary.A balance sheet, which is a financial statement that reports the financial position of a firm by identifying and reporting the value