Balance Sheet, Income and Cash Flow Statements, Shareholders
This paper concentrates on the primary theme of Balance Sheet, Income and Cash Flow Statements, Shareholders in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 40. For more details and full access to the paper, please refer to the site.
Balance Sheet, Income and Cash Flow Statements, Shareholders INSTRUCTIONS:
Your friend who is a non-financial director of a company approaches you and says that “he does not need to prepare accounts, because as long as there is money in the bank he must be making a profit”. Please draft out a response to him explaining why money in the bank may not necessarily mean profit. Refer to any relevant accounting concepts within your answer.
CONTENT:
Financial Statements Insert Name Institution Tutor Date IMPORTANCE OF FINANCIAL STATEMENTS Introduction Money in the bank does not necessarily mean your business is making profit and therefore it is of great importance to prepare financial statements in order to get the real and fair facts about the business. Financial statements are the tools by which any business measures their value as well as their performance. The main financial statements that are prepared by any business are the Balance Sheet, Income Statement, and Statement of cash flow (Financial Statements, 2012, p.780). These statements are generally important since they indicate the various transactions while ensuring that they do not affect performance. The Financial Statements Balance Sheet This is a document that is put together to indicate the assets, liabilities and shareholder’s equity of a business at a given time. The three segments show what the business owns, owes as well as the amount invested in the business. The balance sheet is also known as the statement of financial position as it reflects the financial position of a business as per the period invol
...
Get Fresh Answer: £40 100% Plagiarism Free & Custom Written,