1.Have you ever been exposed (either academically or professionally) to the 3 major financial statements? If so, please share your experiences. If not, now that you have read about them, how do you think they will help you in your personal and/or professional life. - I have not been exposed to the three major financial statements academically or professionally, however after this reading I feel like they can be useful in my personal life by helping me prepare and evaluate my personal financial statement so that I can keep account of any progress toward my financial goals. As for professional life, they will help me understand better a company financial performance and the value of that company if I ever consider investing in a business and also how to prepare accurately and timely financial statements to better understand and run my business successfully. 2-Of the few financial ratios discussed this week, which one do you think is important to know when applying for a job, or investing in, any for-profit organization? …show more content…
The profitability ratios can be use to determine an organization's bottom line and its return to their investors. The most important part of the profitability ratios for investors is the Return on Equity which measures the return of the money investors have invested in the organization and will allow investors to know how effectively their investments are being used, how well the organization can convert its business operations into profits and the higher the percentage, the better because it shows that the organization is performing