TASK 1i Discuss The Main Financial
TASK 1
i. Discuss the main financial statement for a company
Financial Statement
Financial Statements represent a formal record of the financial activities of an entity. These are written reports that quantify the financial strength, performance and liquidity of a company. Financial Statements reflect the financial effects of business transactions and events on the entity. Financial statements are meaningful, written records which allow company to diagnose the financial strengths and weaknesses and increase the life and profitability of the company. Statements are usually prepared annually although the income statement should be developed on a monthly or, at least, a quarterly basis.
Typically, financial statement consists four types which are Statement of Financial Position, Income Statement, Cash Flow Statement, and Statement of Changes in Equity. Basically for a company they use the three financial statements. There are Statement of Financial Position, Income Statement, and Cash Flow Statement.
Statement of Financial Position
According to the (Statement of Financial Position [Balance Sheet]), Statement of Financial Position also known as the Balance Sheet, presents the financial position of an entity at a given date. It is comprised of three main components: Assets, liabilities and equity. Statement of Financial Position helps users of financial statements to evaluate an entity's financial strength in terms of liquidity risk, financial risk, credit risk and business risk. What is the assets, liabilities and equity?.
Assets
Asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Assets are divided into two categories: current and non-current asset. Current assets are ones that an entity expects to use within one-year time from the reporting date while Non-Current assets are those whose benefits are expected to last more
i. Discuss the main financial statement for a company
Financial Statement
Financial Statements represent a formal record of the financial activities of an entity. These are written reports that quantify the financial strength, performance and liquidity of a company. Financial Statements reflect the financial effects of business transactions and events on the entity. Financial statements are meaningful, written records which allow company to diagnose the financial strengths and weaknesses and increase the life and profitability of the company. Statements are usually prepared annually although the income statement should be developed on a monthly or, at least, a quarterly basis.
Typically, financial statement consists four types which are Statement of Financial Position, Income Statement, Cash Flow Statement, and Statement of Changes in Equity. Basically for a company they use the three financial statements. There are Statement of Financial Position, Income Statement, and Cash Flow Statement.
Statement of Financial Position
According to the (Statement of Financial Position [Balance Sheet]), Statement of Financial Position also known as the Balance Sheet, presents the financial position of an entity at a given date. It is comprised of three main components: Assets, liabilities and equity. Statement of Financial Position helps users of financial statements to evaluate an entity's financial strength in terms of liquidity risk, financial risk, credit risk and business risk. What is the assets, liabilities and equity?.
Assets
Asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Assets are divided into two categories: current and non-current asset. Current assets are ones that an entity expects to use within one-year time from the reporting date while Non-Current assets are those whose benefits are expected to last more