0
When applying for a loan from a bank why is it important to have income statements and balance sheets?
Wiki User
∙ 9y ago
Banks would like to know if you are able to pay back what you are borrowing, so it is vital that you show proof of income and assets,, it is with these statements that they can assess and approve the amount of your loan.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What is the most common and important financial statements?
Following are the most common and important financial statements: 1 - Income statement 2 - Balance sheet 3 - Cash flow statement
Net income appears on what statements?
It appears at: Income statement Balance sheet
Is a prepaid expense on the balance sheet or the income statements?
A prepaid expense is an asset listed on the balance sheet.
Do accounts receivable appear on an income statements?
No, A/R is a balance sheet account.
How does ap department appear on company financial statements?
balance sheet and income statment
What are the two important financial statements produce by accounting?
Following is the two major financial statements: 1 - Income statement 2 - Balance Sheet
Are balance sheets ordinarily projected after income statements?
Balance sheets are ordinarily projected after income statements because the firm's growth in retained earnings, an outcome of projected income, is a required input for the balance sheet.
What is the most common and important financial statements?
Following are the most common and important financial statements: 1 - Income statement 2 - Balance sheet 3 - Cash flow statement
What are the four financial statements explain their basic content and why it is important that the statements are prepared?
balance sheet,income statement,cash flow statement,retained earnings
Net income appears on what statements?
It appears at: Income statement Balance sheet
What the income statement and balance sheet jointly known as?
Financial Statements
Is a prepaid expense on the balance sheet or the income statements?
A prepaid expense is an asset listed on the balance sheet.
Do accounts receivable appear on an income statements?
No, A/R is a balance sheet account.
Why the balance sheet is a more important statement than income statement?
The balance sheet is no more or no less important than the income statement. The balance sheet provides a snapshot of the business as it stands at a given point in time and the income statement shows how the business got there. Together with the statement of cash flow (which can be constructed using multiple years of income statements and balance sheets), these three financial documents help clearly define the financial health of the business.
Why Balance sheet is a more important statement than income statement?
The balance sheet is no more or no less important than the income statement. The balance sheet provides a snapshot of the business as it stands at a given point in time and the income statement shows how the business got there. Together with the statement of cash flow (which can be constructed using multiple years of income statements and balance sheets), these three financial documents help clearly define the financial health of the business.
Why the balance sheet statement is more important than income sheet?
The balance sheet is no more or no less important than the income statement. The balance sheet provides a snapshot of the business as it stands at a given point in time and the income statement shows how the business got there. Together with the statement of cash flow (which can be constructed using multiple years of income statements and balance sheets), these three financial documents help clearly define the financial health of the business.
How does ap department appear on company financial statements?
balance sheet and income statment
