0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Who prepares financial statements?
Accountants, usually
How do you construct a statement of cash flow from income statements and balance sheets?
Constructing a statement of cash flow from income statements and balance sheet is no simple task and requires training. Most CPAs can do this, but not all. Unless you are a professional finance person or accountant, I suggest you hire an accountant to do this. Additionally, please be aware that financial statements prepared in accordnace with GAAP, usually include a cash flows statement with the income statement and balance sheet.
What is the purpose of financial accounting?
The purpose of financial accounting is to provide financial statements and financial reports to individuals who require them. This includes preparing a balance sheet, income statement, cash flow and notes. People that use this information usually have an interest in the company due to investment or ownership.
What type of information does Balance Sheet provide to outside Investors?
Components of Financial statement Financial statements are the end product of the whole accounting process. these show the profitability of the business and the financial position for a specific time. The most common components of thenancial statements are Profit & Loss, Balance Sheet, and Cash flow statements, statement of charges in equity, notes to the account, and comparative figures of previous period Profit & Loss account: The statement prepared to know the gross income and the net income at the end of a particular period is known as profit & loss accounts. In this the expenses are grouped according to the nature and the cost of goods sold is worked out , then the totals of both are deducted fro the sale revenue. The positive result of this shows net income while the negative result represents the net loss sustained by the business. Balance Sheet: The balance sheet is the list of assets and equities prepared at a specific time. It is also known as the statement of financial conditions of a business. The balance sheet focuses on the financial position of a business, rather than the owner. It is usually prepared at the end of each financial year. Cash Flow Statements: Today the concept of Limited companies is ever-growing, due to which the need for regular and legal cash flow arise, even now a days it is required by the law. Cash flow statements represents that how the cash was generated and how it is used by the business. Further it has two components: Cash flow from Operating activities and Cash flow from Financing activities.
Differentiate between cost accounting and financial accounting?
Cost accounting is usually involved with management accounting. Financial accounting tends to deal with the past and presents information like statements for public and private use. Management.the question am asking have not been answered .because financial accounting and cost accounting is not the same nor even having the same answer .
What is auditioning?
auditing is the examination of financial statements by an independent certified public accountant as to the fairness with which the financial statements are prepared.
Who prepares financial statements?
Accountants, usually
Why is is difficult to get KFC financial report or financial statements?
Because they are owned by Yum! Brands, and so the financial statements will usually be under that company as a whole. It is hard to find the individual reports from brands that are owned by bigger companies.
When should a bank reconciliation be prepared?
A bank reconciliation should be prepared to reconcile the accounts in the company's books and those at the bank. This is usually done using bank statements.
When reported in financial statements a lifo allowance account usually?
Indicates the effect on income if LIFO were not used.
When is the income statement prepare?
Usually at the end of the financial period. It depends on the regulations of the country as well. In Singapore, companies are required to submit financial statements quarterly.
What does compilation of prospective financial statements by public accountants involve?
the service of preparing the statements in whole or part from information and significant assumptions provided by the responsible party, usually a member of management
How do you construct a statement of cash flow from income statements and balance sheets?
Constructing a statement of cash flow from income statements and balance sheet is no simple task and requires training. Most CPAs can do this, but not all. Unless you are a professional finance person or accountant, I suggest you hire an accountant to do this. Additionally, please be aware that financial statements prepared in accordnace with GAAP, usually include a cash flows statement with the income statement and balance sheet.
What is the purpose of financial accounting?
The purpose of financial accounting is to provide financial statements and financial reports to individuals who require them. This includes preparing a balance sheet, income statement, cash flow and notes. People that use this information usually have an interest in the company due to investment or ownership.
What is the difference between an income statement and financial statement?
Financial report means any report about monitory matters. In other words a financial report is about the transactions that have financial effects. To run a business financial reports play important role as relevant financial information is transmitted to relevant users inside and outside the entity to help them in making decisions. For example; bank statement, aged debtors analysis report etc.Some financial statements are prepared on regular basis at equal intervals and some are prepared as and when needed. Some financial reports are meant only for management and some are communicated to people outside the entity as well.Financial statements on the other hand are also financial reports. But in the business and accounting the term financial statement has more of a formal status.Usually financial statements refer to either a statement included in the complete set of general purpose financial statements or a complete set of general purpose financial statements. And due the same reason whenever the term financial statement is used, it is often assumed that a report is about entity's financial position, financial performance, cash flows or fluctuations in equity.The term financial statement is usually used for all or any of the following statements:Statement of financial positionStatement of Comprehensive Income or Income StatementStatement of Cash FlowsStatement of Changes in EquityAs said earlier that financial statements are in fact financial reports but presented following a certain set of instructions as given by applicable financial reporting framework. For example International Financial Reporting Standards.Majority of financial reports for internal purposes have such format or presentation rules that are set by the management or the user himself and sometimes no particular format is followed. In addition to that some financial reports are prepared on regular basis after equal intervals and some are prepared only when they are needed and are named as contingency reports. Financial statements are one of such reports that are prepared on regular basis as specific entities are required to do so according to applicable laws.In the end, again there is no difference between the terms financial statement and financial report. But their usual interpretation and meaning in the financial and accountancy world is somewhat different.
What financial statement changes on a daily basis?
none, a company cannot afford to make financial statements on a daily basis. Usually companies keep track of daily "changes" via a general ledger. When the company needs to create financial statements they post and close the general ledger temporary accounts and make trial balances, adjusted trial balances, closed trial balances and finally the financial statements such as Income statement, balance sheet, Statement of retained earnings, and finally a cash flow statement.
What does a book keeper usually do?
A bookkeeper is responsible for recording financial transactions, keeping track of accounts payable and accounts receivable, and producing financial statements like balance sheets and income statements. They help ensure that a company's financial records are accurate and up-to-date.
