What is a financial statement?

Each company issues financial statements at the end of each fiscal or financial year. These documents provide a summary of all income and expenditure that arose during this period. The audience for the financial statements includes company officials, investors, creditors and customers. These three documents provide a detailed view of the company's operations, sales volume and overall management. In a publicly traded company, an independent accounting company checks these statements and a position on the accuracy of these reports is set. This is called an audit statement and is used to ensure that the company's records are accurate. Typically, the income categories are sales income, investment income and income from services. Expenditure categories include salaries and benefits, stocks and vehicles. Net income or loss value is the difference between total income and total expenditure. The positive value is profit and the negative value is loss. In the balance sheet can be found to divide the costs of fixed assets and consumables. The purpose of the balance sheety is to get a more detailed picture of your account activity.

The cash flow statement is used to illustrate the current position of cash, liquid asset and receivables. This report is a good indicator of the company's operational proceedings and the impact of their claims of receivables. The company may seem financially healthy on the basis of income statements and balance sheets when it is not. The cash flow statement adds context to the messages and reflects the actual cash position.

The company's financial statement provides a great opportunity to learn about the company's finances. Take the time to compare the three main messages and read all the notes in the financial statements. These items provide the context of values ​​in statements and provide an increased view of the company's financial health. A professional financial analyst uses five key conditions and calculations to evaluate and evaluate the company's financial health. I will provide informationThis is used in the financial statements in these calculations and are provided to investors and financial institutions.