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Financial statements - Coggle Diagram
Financial statements
The balance sheet
Elements
Company assets, liabilities, shareholders, income statement and statement of cash flows
Who can Audit them?
The accountants
What do they state?
Cash, minor expenses, accounts receivable, commodity, teams, ground, buildings, advance payments for merchandise, insurance.
Why is it useful?
Give interested parties an idea of the company's financial position, in addition to displaying what the company owns and owes.
What do they ensure?
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 Flow statement
Elements
Operating, investing, and financing activities
Who can audit them?
All the companies, except small and dormant companies
What do they ensure?
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.
What do they state?
The cash flow statement tells you how much cash entered and left your business over a particular time period.
Why is it useful
It informs the reader of the business cash position. For a business to be successful, it must have sufficient cash at all times.
Income statement
Elements
Revenue, Cost of Goods Sold, Gross Profit, Operating Expenses, Net Profit
What do they state?
It indicates where income is coming from, where expenses arise while also showing the net profit or loss during the time period.
Why is it useful?
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
What do they ensure?
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).
Who can audit them?
The accountants