Financial Report

Purpose of Financial Reports

Financial reports are important in terms of reputation, compliance, and an overview of the overall health of the business. However, more important than the reports themselves is the accuracy of the reports. The importance of reliable and accurate reports cannot be underestimated.
Providing accurate information is possibly the most important aspect of maintaining a good reputation, especially when it comes to transparency.
Researchers/Investors , market analysts, and creditors uses financial statements to assess evaluate a company’s financial health and earnings potential.

The three most important final reports are the balance sheet, the income statement, and the cash flow statement.

Income statements:

The income statement is one of the key financial statements of a company that shows its profits and losses over a period of time. Profit or loss is determined by taking all revenues and subtracting all costs of operational and non-operational activities. One of the three states that were used both in corporate finance (including financial models) and accounting. The state shows revenues, costs, gross, administrative, and sales expenses, other expenses and income, taxes, and net profit in coherent and logical.

Balance sheet

The balance sheet is one of the three basic financial statements and is key to the elaboration of financial models and accounting. The balance sheet shows the total assets of the company and how those assets are financed with debt or capital. It can also be used as a state of net equity or a statement of financial situation. The balance is divided into two sections. On the left side of the balance, all assets of a company are listed. On the right side, the liabilities and the equity of the company are listed in the balance sheet. Assets and liabilities are divided into two categories: short-term active / liabilities and long-term liabilities (long-term). The most liquid accounts, such as inventories, cash and the responsibilities of deliveries and services will be available in the current section of the illiquid accounts (or long term), such as ownership, plant and equipment (PP & E) and Long-term liabilities.

Cash flow statements:

The Statement of Cash Flows (also referred to as cash flow) is one of the three key terms, which transmits the generated and over a certain period of time and over a period of time (eg a month, quarter or year). The cash flow statement acts as a bridge between the income statement and the balance sheet, which shows how the money has been moved inside and outside the business. Three sections of the cash flow statement: Operational activities: The most important sales activities of an organization and other activities that do not invest or finance; Any cash flows from short-term and short-term liabilities. Investment activities: All cash flows for the acquisition and provision of long-term assets and other investments that are not included in cash equivalents. Financing activities: All cash flows that lead to changes in the size and composition of the company introduced or company bonds (i.e. Bonds, stocks, dividends). Statement of Shareholders’ Equity In an equity statement, changes are listed within the Equity section of the balance sheet over a certain period of time. The report contains additional information for readers of the annual financial statements about equity-related activities during a reporting period. The list is particularly useful for the disclosure of share sales and buybacks by the reporting company; In particular, a listed company can perform these activities continuously. The report is usually created in a grid, with the beginning balance being specified in each item of equity above, in which the beginning balances are added and deducted from them in the center of the report and the ending balances below, containing additions and subtractions.
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