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Which one of the four financial statements is your favorite and why?
Wiki User
∙ 12y ago
It depends on why you are using the financial statements. What do you want to know? How is the company using their cash? Look at the Statement of Cash Flows. Liquidity ratios, amount of debt, kinds of assets... look at the Balance Sheet. What are they selling, where do the revenues come from, what does the product cost or what other expenses do they have, what kind of profits do they have... look at the Income Statement. Ideally, all are important. Income is fine, but if it is all paper income (non-cash), there may be cash flow problems in the near future--thus the importance of looking at the cash flow statement. Income is great, but if liabilities are too high, the income may not be adequate to service the debt in the long term--thus the importance of looking at the balance sheet. Statement of changes in equity, of course, to see if there is anything significant other than income, or perhaps dividends.
Wiki User
∙ 12y ago
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How might changing one of the financial statements affect the other financial statements?
How might changing one of the financial statements affect the other financial statements?
What is consolidating financial statements?
hen a large company acquire one or more small companies then acquiring company is called the parent company and acquired companies are called subsidiary companies so when the financial statements of parent company and subsidiary companies are prepared in one financial statement altogether those financial statements are called consolidated financial statements.
What is the difference between consolidated and parent company statements?
Comparative financial statements compares one set of financial statement with another set of financial statements while consolidated financial statement is prepared where in company there is parent and child company relationship exists to join the financial statements of parent and child company as a single financial statements.
What can a CPA do that no one else can do?
Produce CERTIFIED Financial Statements. Most financial institutions that make business loans will require financial statements that are "Certified". Thus a regular Public Accountant would not suffice.
What is the meaning of interim financial statement?
Interim financial statements are the documents that enclosed with the complete financial aspects of a business or other individual for less than one calendar year. Mostly these interim financial statements are issued to cover a three month of financial activity of a business. I would suggest you to take a visit to the following website to know more about financial statements http://www.silverwhale.com.au
What is a unconsolidated balance sheet?
When there is parent subsidiary relationship exists and in that case if separate financial statements are prepared by both parent and subsidiary company those statements are called unconsolidated statements.
What are the Benefits of financial ratio analysis?
One of the main benefits of financial ratio analysis is that it simplifies financial statements. Another advantage is that vital information is easily highlighted.
Identify user groups of financial statements and explain what information they are likely to want from them?
One user group for financial statements is external investors. They use the documents to determine whether the business is profitable. Internally, managers look at financial documents to determine whether their department is profitable.
What is the difference between proforma financial statements and projected financial statements?
Pro forma financial statements are based off of historical statements and include a select few changes or exclusions "as a matter of form" (hence the name). For example, addition of debt or exclusion of extraordinary one-time expense. "Projected financial statements" (aka projections) can be made from scratch and are based off of many different assumptions, few or none of which are based on actual performance. Hope this helps! Source: my recent completion of a formal commercial bank credit training program.
Why is it important to prepare the financial statements prior to the closing activities?
It'd be far better to end-up with the current transactions and the related financial details while starting over the new one. And with that, the financial statements would do so the needed in order the tax returns, payroll information, etc is vivid for the business to submit whenever required. This would be the reason for preparing the statements.
What are the consolidated financial statements?
Companies issue four basic financial statements:Balance SheetIncome StatementStatement of Cash FlowsStatement of Stockholders' EquityCompanies also must present a Statement of Comprehensive Income. Most companies include this in the Statement of Stockholders' Equity."Consolidated" financial statements include more than one affiliated company. For example, if Company A owns all of Company B, then the two companies together will present consolidated financial statements, presented as if both companies were really one company. Each line item is presented for all companies. For example, Cash presents total cash for all affiliated companies. Sales presents sales for all affiliated companies, added together.
How do you get audited financial statements for hospital?
If it is a publicly held entity they should post the financial statements on their website or provide a copy if you request one. (They are required to provide them.) If it is a privately held entity then you have to ask very politely and have a valid reason as to why you would need them. (They are NOT required to provide them.)
