Financial statements
The balance sheet
Cash Flow statement
Income statement
Elements
Company assets, liabilities, shareholders, income statement and statement of cash flows
Who can Audit them?
What do they state?
Why is it useful?
What do they ensure?
Give interested parties an idea of the company's financial position, in addition to displaying what the company owns and owes.
They ensure the financial status of a company in a determined time. Debts to pay, salaries to pay, taxes to pay, interest on loans, loans payable, expenses payable, casual job wages, lease.
Cash, minor expenses, accounts receivable, commodity, teams, ground, buildings, advance payments for merchandise, insurance.
Elements
What do they state?
Why is it useful?
What do they ensure?
Who can audit them?
Shows you how profitable your business was over an accounting period, such as a month, quarter, or year. It shows you how much you made (revenue) and how much you spent (expenses).
The accountants
It indicates where income is coming from, where expenses arise while also showing the net profit or loss during the time period.
Revenue, Cost of Goods Sold, Gross Profit, Operating Expenses, Net Profit
The accountants
It is important because it clearly states whether a company is making a profit. The total revenues and expenses of a company are listed on its income statement
Elements
Who can audit them?
What do they ensure?
What do they state?
Why is it useful
The cash flow statement tells you how much cash entered and left your business over a particular time period.
The cash flow statement tells you how much cash you collected and paid out over the year. This can help you predict future cash surpluses and shortages, and help you plan to have enough cash on hand to cover rent.
It informs the reader of the business cash position. For a business to be successful, it must have sufficient cash at all times.
Operating, investing, and financing activities
All the companies, except small and dormant companies