In the name of Allah most gracious most merciful. In this essay I will take about financial statement. Trying to write everything I knew about it, starting with the types of financial statement, relationship between financial statement and financial statement in practice.
I will use a KSA company as an example of the financial statement broses and how it effects the company progress. Hoping in writing a useful sheets for those who study or interesting in this failed.
Financial statements :
Financial statements are records that provide an indication of an individual’s, organization’s, or business’ financial status. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants.
For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis. There are four basic types of financial statements: balance sheets, income statements, cash-flow statements, and statements of retained earnings. Typically, financial statements are used in relation to business endeavors.
Financial statement analysis:
Without analyzing financial data from your small business firm, you, as the owner, would be flying blind. Even if the financial end of things is not your favorite part of your business and you intend to outsource as much of it as possible, you still have to understand it. Why? Because you have to understand the output you receive from your accountant or other financial