Assessment 2 - Step 2

HMMM?

 Comments and Responses to Classifying my Firm's Financial Statement

I found that classifying my firm’s financial statements in step two of the assessment to be slightly challenging, yet interesting at the same time. Delving deeper into my company’s financial statements and notes to each section allowed me to form a broader knowledge base on what each category of financials meant. I did come across a few challenges throughout classifying the categories of my firm which held both financial, and operating items (these were classified as “OF” for both on the spreadsheet). Most of the items in my company’s spreadsheet required further analysis of the notes to financial statements in order to determine what classification they had. This was both time consuming and confusing at times, but I feel like I’ve classified each term correctly based on my company’s specific operations. The only activities I truly got stuck on were deferred tax assets and deferred tax liabilities as I couldn’t define them as a singular activity. To address this, I asked Maria Tyler in our weekly workshop, and she clarified that these were both classified as operating activities. This was very helpful, thank you!

Overall, completing this task felt very hands-on, which is how I personally learn most effectively. Putting the extra time into researching each specific item on the financial statements and classifying which activity heading they resided under has helped me better understand how they all join and work together within my firm.