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Balance Sheet - Gives a snapshot of what a company owns and owes Income Statement - Shows how and from where a company has earned money (or assets in general) over a given time period Cash Flow - Shows the flow of cash (both in and out) over a given time period
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What is the purpose of an audit?
The purpose of an audit is to add credibility to the financial statements of a business organization.To give credence to the accounting records, accounting polices and financial statements of an audit client.
Why auditors need to be independent?
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
What are the disadvantages of consolidated financial statements?
Combining financial statements could be a disadvantage because you cannot see the details that give you the strengths of the company. If you have separate financial statements for the parent and subsidiaries then you can break down a more meticulous analysis for each department and therefore see the basis and solidarity of the company
Disadvantages of financial audits?
Financial statements give an idea about the financial position of the company, however, there are some limitations of the financial statements. The first limitation is that a financial statement ignores the productivity and the skills of the employees in an organization. Management Decision Analysis Report gives an idea about it but financial statements are unable to evaluate the skills which a company has. Secondly, balance sheet does not give timely and relevant information because it is based on historical costs and it does not give a fair idea about the current position of the company. There are different accounting measurement systems therefore, use of different techniques by different companies can make the comparisons of financial statements difficult. Moreover, income statement is considered a fiction because cash is king and income statement ignores this fact.
Give 5 reasons for preparing financial statements?
To know the profitability of the company. To satisfy the shareholders with their investment in the company. In case of financial sourcing, these statements can be of relevance for the company for instance, banks will need to look at its stand in order to be certain and convinced that their money will be repaid.
What is difference between audited and unaudited balance sheet?
i was looking for the same answer.... so9 here it goes..A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of an entity. The opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework (the GAAS requirements)ANDAn unaudited financial statement is that which an auditor has prepared, but not according to the Generally Accepted Auditing Standards (GAAS). Auditors preparing unaudited statements are required to issue a disclaimer stating that they are not rendering opinions and that the statement does not abide by the GAAS.hope it helped clear the difference!!:)
In general terms what does a set of financial statement describe?
Financial Statements could be of a individual or a company/business.Personal Financial statement would give all the personal financial information of the individual, for ex. his years income, sources of his income, his expenses, things he spent on, etc.A company's or business's financial statement would give you the complete idea of the company including the income of the company, the expenses, the amount of money spent on labor, gross profit of the company, net profit, etc.Financial Statements are something that are used by any company requires to check your credit, for ex. you going to buy a car/house, etc.
Define nonohmic materials and give examples to them?
define the nonohmic metarials and give examples to them
Is it possible to prepare financial statements without the help of trial balance under accounting for incomplete records You need to give your view point along with proper justification and explain?
no
What is a financial analyst?
A financial analyst is a professional that studies various industries and companies, and provides research and evaluation reports. A financial analyst also makes buy, sell, and hold recommendations.
Define statistical inference. Give one example of statistical inference?
Define statistical inference and give an example
Pls give me 1m?
Define give me 1m
