Employees can also be potential investors and they may need the financial statements in order to decide whether or not it would be prudent to invest in the company. Also if they need to negotiate wages, they can use the financial statements to prove that the company can afford to increase their wages. It also helps employees to see the stability of the company (for example if the company is going to sink, they will be able to pre-empt the fact that they might not be around for much longer and be able to start looking for jobs elsewhere)
Lenders need to know whether the firm which has taken the loans is able enough to pay it back. It will calculate various ratios and those are calculated by using the various figures of Financial Statements. Also we get to know the profits and losses. So lenders would not like to lend to a loss making firm..
financial statement is the most important for a company .financial statement is made by the company to adjust the record ,know the profit and loss and to balance the balance sheet.it is the prof that company is going in profit or loss
There are a number of reasons why you would need to prepare financial statement. This will give you the true picture of your current financial status.
there are only use full togive finance and other a few
monthly
A financial mission is a statement of one's goals regarding money- how you want to save, spend, and prepare for the future financially.
Many websites are available to help one prepare a financial statement for a small business. Such websites include the Small Business Assocation, BizFinance About, and Dummies.
Statement of financial position ( Balance sheet) , Statement of Comprehensive Income ( Profit and Loss Account or Income and Expenditure account), Cash flow statement.
The auditor is the person who assesses whether the financial statement has been prepared accordingly or not. Firstly it is not the role of the auditor to prepare the financial statement as the auditor has to form an independent opinion. Secondly, it would be part of internal control and corporate governance activities for the preparation of the financial statement and the audit to be conducted be two separate parties to eliminate error or fraud.
No, that is explained on the Statement of Changes in Owner's Equity. However, you do need to prepare a Statement of Comprehensive Income first in order to prepare the Statement of Changes.
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.
Finalization of accounts is to prepare financial reports along with comparision and brefing of company's financial reports include (Income Statement, Cash flows, Balance Sheet, Statement Chages in Equity, Policies and disclousers) .
Finalization of accounts is to prepare financial reports along with comparision and brefing of company's financial reports include (Income Statement, Cash flows, Balance Sheet, Statement Chages in Equity, Policies and disclousers) .
why is financial statement analysis part of business analysis? Please answer this question, I'll need it this answer!
To prepare a person statement of financial condition, a person needs to list their assets in one column and their monthly bills in another column. Any money they received should be noted as to the source of that money. They should also include any balances owed for loans, mortgages, etc.
Notes to financial statement can be considered to be a financial statement since they report the details and additional information that are left out.