What can you find from a financial statement?
Financial statement ate meant to present the financial information of the entity and for readers. Financial statement for businesses usually include income statement, balance sheet , statement of retained earnings and cash flows are well as other possible statements. Income Statement
A financial statement that measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year.Also known as the "profit and loss statement" or "statement of revenue and expense. Balance Sheet
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
Why do you think that a financial statement is important?
financial statements are important. They show how a business is doing and are very useful internally for a company's stockholders and to its board of directors, its managers and some employees, including labor unions. Externally, they are important to prospective investors, to government agencies responsible for taxing and regulating, to lenders such as banks and credit rating agencies, and to investment analysts and stockbrokers.
What are the problems that you encounter during presentation of financial statement?
How are you supposed to analyse financial stetement?
The process of reviewing and evaluating a company’s financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more...