ACCOUNTING IN BUSINESS
ACCOUNTING IN BUSINESS
“Defining the three important financial statements has made analysts’ life simpler by ensuring consistency in reporting”.
Analyzing a business’s performance and standing can be adequately done using financial statements.
WORD COUNT: -1463
Kunal Sharman
SHTM 2012
Institute for international management and technology
Oxford Brookes University
Ms.Garima Gupta
“Defining the three important financial statements has made analysts’ life simpler by ensuring consistency in reporting”.
A collection of facts and figures which are organized in a proper and systematic accounting procedures. Financial statements convey an understanding and content of financial data of an organization. According to john Hampton a financial statement is an organized collection of data according to logical and consistent accounting procedures. The aim is to convey an understanding of financial aspects of a firm. This essay will tell us about what are the three important financial statements and how these three important financial statements has made analyst life simpler by ensuring consistency in reporting.
Balance sheet, income statement and cash flow statement are the three important financial statements.
Balance sheet:
A Balance Sheet is a financial statement that shows the financial position at a given date. Balance sheet includes a company's assets and liabilities. Assets are what we own and these are of two types; fixed asset and currents assets. Current assets include cash at bank, stocks, debtors and prepayments. Fixed assets include land and buildings, furniture and equipments. Long-term investments include share and deposits.
Liabilities are what we owe and liabilities are of two type’s current liabilities, fixed liabilities, shareholder funds and long-term borrowings. Current liabilities include creditors, accruals and bank overdraft. Fixed liabilities are of two types’ shareholders funds which include share capital, reserves and retained profits.
“Defining the three important financial statements has made analysts’ life simpler by ensuring consistency in reporting”.
Analyzing a business’s performance and standing can be adequately done using financial statements.
WORD COUNT: -1463
Kunal Sharman
SHTM 2012
Institute for international management and technology
Oxford Brookes University
Ms.Garima Gupta
“Defining the three important financial statements has made analysts’ life simpler by ensuring consistency in reporting”.
A collection of facts and figures which are organized in a proper and systematic accounting procedures. Financial statements convey an understanding and content of financial data of an organization. According to john Hampton a financial statement is an organized collection of data according to logical and consistent accounting procedures. The aim is to convey an understanding of financial aspects of a firm. This essay will tell us about what are the three important financial statements and how these three important financial statements has made analyst life simpler by ensuring consistency in reporting.
Balance sheet, income statement and cash flow statement are the three important financial statements.
Balance sheet:
A Balance Sheet is a financial statement that shows the financial position at a given date. Balance sheet includes a company's assets and liabilities. Assets are what we own and these are of two types; fixed asset and currents assets. Current assets include cash at bank, stocks, debtors and prepayments. Fixed assets include land and buildings, furniture and equipments. Long-term investments include share and deposits.
Liabilities are what we owe and liabilities are of two type’s current liabilities, fixed liabilities, shareholder funds and long-term borrowings. Current liabilities include creditors, accruals and bank overdraft. Fixed liabilities are of two types’ shareholders funds which include share capital, reserves and retained profits.