Академический Документы
Профессиональный Документы
Культура Документы
Financial Reporting
Methods
Internal
Reporting
Made for internal
parties.
Confidential report.
No legal
requirement.
Detailed report.
Flexible in
preparation.
External
Reporting
Made for external
parties.
Public report.
Legally bound.
Summarized report.
Inflexible in
preparation.
Income Statement
Revenue
Cost of sales
Admin cost
Distribution cost
Finance cost
Finance Income
Tax
$ 5850
$ 2000
$ 400
$ 250
$2650
$3200
Revenue
Service Revenue
5850
Expenses
Salary expense
2000
Rent expense
400
Advertising expense
250
Total expenses
$2650
Net Income
$3200
$
$
$ 13200
Drawings
($ 1000)
Capital at 30th of April
$ 12200
Balance Sheet
Buddys Owners Balance Sheet
As at 30th of April
$0
$ 10000
$ 3200
$
13200
Drawings
1000)
Capital at 30th of April
12200
($
$
Assets
Cash
Account Receivable
Equipments
Total Assets
Liabilities
Accounts Payable
Equity
Buddys capital
$ 6820
$ 630
$ 5000
$ 12450
$ 250
$ 12200
Liabilities
Owners Equity
As at 30th of April
As at 30th of April
Assets
Cash
6820
Account Receivable
Equipments
5000
Total Assets
12450
Liabilities
Accounts Payable
Equity
Buddys capital
12200
$
$ 630
$
$
$ 250
$ 5220
($ 2400 )
$ 2820
($5000 )
$ 10000
($ 1000)
$9000
$
$0
$
Conclusions
All business owners should have a basic set of
financial statements at their organization and they
should know how to analyze and interpret them.
Measure financial conditions and the financial
performance of the business.
Facilitates rational decision making.
Compliance with the legal requirements.
Making information available to various groups and
users at a particular time.
Helps to planning and control business operation.