Every transaction that a business gets involved with ultimately finds its way into the accounting records and financial statements of the business.
In business there are essential two main types of financial reports (or "accounts"):
Financial accounting and accompanying financial restatements focus on reports that a business is required to produce.
The three main elements of financial accounts are:
This measures the business' performance over a given period of time, usually one year. It compares the income of the business against the cost of goods or services and expenses incurred in earning that revenue.
This is a snapshot of the business' assets (what it owns or is owed) and its liabilities (what it owes) on a particular day - usually the last day of the financial year.
CASH FLOW STATEMENT
This shows how the business has generated and disposed of cash and liquid funds during the period under review.
If you were to look at the financial accounts of a public company you would also find other elements that provide detailed information for investors, analysts and other users of the accounts.They include:
Join the tutor2u Business team for a resource-packed day designed to fast-track your lesson planning and preparation for the new Edexcel A Level Business specification. We'll look at the key changes in teaching content, explore the new challenges of teaching this linear specification and dive into some brand new teaching resources designed specifically for the new Edexcel A Level Business course from September 2015.
Our Year 1 (AS) Course Companion is the designed as a high quality and cost-effective replacement for expensive and overly complicated textbooks. The Course Companion maps precisely against the specification and teaching content for Year 1 (AS) and provides students with comprehensive and concise coverage of what students really need to know and understand.
This resource comprises a complete collection of editable worksheets that that enable students to practice all elements of the quantitative and data analysis skills required by the Year 1 (AS) teaching content.