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tods5eshoes · Wysłany: Sob 13:11, 12 Mar 2011 Temat postu: asic 0057

Types of financial statements
A financial statement is a comprehensive report which signifies the financial status and position of an organization in terms of profits made, investments, assets, liabilities, expenses, capital, debts etc. A financial statement is very important for an organization without which the performance in terms of achievements will never by known. Modern day management and the extent of business activities along with business diversification have given rise to many types of financial statements and there has been a constant effort to improvise the existing financial statement. A financial statement records all the financial transactions (big and small) that take place in an organization. Most of the organizations have quarterly; half yearly and yearly financial statements and the yearly financial statements are commonly called as annual reports. These reports are prepared by expert financial analysts, accountants and auditors who ensure that the financial statements give the true financial picture of the financial condition of the organization. The following are a few types of financial statements that are commonly used in modern day business.? Balance Sheet �C A balance sheet is statement which gives a picture of the assets and liabilities of an organization. Assets include the infrastructure, debtors to the organization, prepaid expenses, bills receivable etc where as liabilities include sources of capital (debt and equity), creditors, bills payable and expenses not met. The overall purpose of this statement is to highlight the profits or losses that are derived from the business.? General ledgers �C General ledgers are b[link widoczny dla zalogowanych] book keeping and accounting practices which day to day transactions.? Income statements �C Income statements are b[link widoczny dla zalogowanych]ally classified into single step income statements and multi step income statements. Single step statement is a type of income statement which uses a single formula to derive the net income. The formula used is Net Income = (Revenues + Gains) �C (Expenses + Losses). A multiple income statement which has uses multiple formulas and has multiple steps to derive at the net income, however this method is the one which is mostly used as it gives a detailed report which includes cost of the goods sold, operating expenses, non-operating expenses which are finally deducted from gross sales to conclude on the net income.? Statement of cash flows �C This is popular among the modern financial statements. The whole purpose of this statement is to figure out the final available cash balance at the end of a certain period. The statement of cash flows are divided into cash flows from operating activities, cash flows from investing activities and cash flows from financing activities. The above four different kinds of financial statements will give a glimpse of the components of financial statements. Ray Mason holds a MBA in International business. He currently works as a content creator at en. Oboulo. com. It is an ebay of documents contributed by journalists, Professors, Lawyers, Students and other professionals. Papers are published in over 30 categories like Marketing, Business, History and more. For more information please visit: Oboulo. com - Your knowledge database! Presentations, book review, research papers, theses, reports, articlesMany interesting case studies from around the world can be found at Oboulo. comTopics related articles：

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