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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)
What else can I help you with?
When does an accounting prepare the financial statement?
monthly
Financial mission statement?
A financial mission is a statement of one's goals regarding money- how you want to save, spend, and prepare for the future financially.
How does one prepare a financial statement for a small business?
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.
Why are companies required to prepare a statement of cash flows and what is its significance in financial reporting?
Companies are required to prepare a statement of cash flows to show how cash is generated and used in their operations. This statement is significant in financial reporting because it provides insights into a company's liquidity, operating activities, and ability to meet financial obligations.
Three key financial statements that corporations are required to prepare?
Statement of financial position ( Balance sheet) , Statement of Comprehensive Income ( Profit and Loss Account or Income and Expenditure account), Cash flow statement.
Why an auditor should not prepare the financial statement and then express an opinion Also the standards to which this relates?
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.
Does the Statement of Comprehensive Income explain changes in Equity?
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.
What is the Correct order to prepare for three financial statements?
The correct order to prepare the three financial statements is to start with the Income Statement, which summarizes revenues and expenses to determine net income. Next, use the net income from the Income Statement to prepare the Statement of Retained Earnings, which outlines changes in equity. Finally, create the Balance Sheet, which reflects the company's assets, liabilities, and equity, incorporating the ending retained earnings from the Statement of Retained Earnings.
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 is finalization of accounts?
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) .
What is final accountant?
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 do you say that financial statement analysis is management by exception?
why is financial statement analysis part of business analysis? Please answer this question, I'll need it this answer!
