Learn all about financial statements such as the income statement and balance sheet through this educational song. To be used for teachers as supplemental classroom resource or for students as a new study tool. Understand the basics of finance through this educational song, “The Income Statement & Balance Sheet Song.”

Lyrics:

A company’s financial statements will give answers
to every transaction
let me give you some examples
the Balance Sheet, tracking companies assets
and liabilities at specific moment

those assets like cash and their land, buildings
and investments they possess, pre-paid expenses
they are meant to equal debt, liabilities
equals out when you add Stockholder’s Equity, HEY

you can learn that equation easily
the Assets equal Liabilities
plus the Stockholder’s equity
the Balance Sheet’s a snapshot of the company

Income Statement shows efficiencies
usually a quarter or annual summary
to show profit, if they made money
start with revenue; the total sales you’ve received
so subtracting, cost of goods and
minus all expenses equals the profit
illustrating, the money you’re losing or making
and that is the purpose of the Income Statement!

every business or company
uses financial statements that you see
helps investors see use of money
the Income Statement and Balance Sheet

every business or company
uses financial statements that you see
helps investors see use of money
the Income Statement and Balance Sheet

Original recording date: August 2016