What information can financial accounting statements provide about a business?

Updated on workplace 2024-03-26
7 answers
  1. Anonymous users2024-02-07

    In fact, your question is that the balance sheet reflects the assets, liabilities and ownership of the company, and the income statement reflects the company's revenue, costs and expenses in the current financial year. You can use some ratios to reflect the company's performance in the current year compared to previous years, or with the standards of the industry. The cash flow statement reflects the cash income and expenditure of the enterprise for the year, and cash is very important to a company, reflecting the company's liqudity and profitbility.

    I talked about it in a more general way, I searched for relevant content on the Internet, and this article is quite detailed, specifically introducing the role of the three major financial statements and the relationship between them, as well as how to look at the financial statements.

  2. Anonymous users2024-02-06

    Financial statements mainly provide information such as the financial situation, operating performance and cash flow of an enterprise in a specific accounting period. The balance sheet mainly reflects the assets, liabilities and owners' equity of the enterprise at the end of a specific accounting period, the income statement mainly reflects the income, expenses and profits of the enterprise in a specific accounting period, the cash flow statement mainly reflects the cash inflow and outflow of the company's operating activities, investment activities, financing activities and other economic activities in a specific accounting period, and the statement of changes in owners' equity mainly reflects the capital invested by the owners of the enterprise and the increase or decrease in the retained earnings of the enterprise in a specific accounting period.

    The use or utilization of financial statement information involves the interests of different stakeholders, and the focus of the accounting information of the enterprise concerned by each sholder is also different, such as investors are mainly concerned about their investment risks and investment returns (returns), creditors are mainly concerned about the solvency of the enterprise, and the management of the enterprise requires to know the overall situation of the enterprise, ** and its economic supervision agency judges whether the economic behavior of the enterprise is legal and effective through the accounting information provided by the enterprise, and at the same time serves as a decision on economic policy, Information base for statistics on national income, etc. Of course, there is an intrinsic relationship between the profitability of the enterprise, the ability to repay debts, and the ability to operate capital.

  3. Anonymous users2024-02-05

    Answer]: a, b, d

    Financial statements refer to the written documents that reflect the financial status, operating results and cash flow slag and volume of the enterprise in a state-of-the-art manner with certain accounting methods and procedures, and the data from the account books in front of the accounting shed. Information on the situation of manpower is not available.

  4. Anonymous users2024-02-04

    Hello dear<>

    We're happy to answer your questions! The information that financial statements can provide for financial management is as follows: (1) For the enterprise itself: The information in the financial statements is helpful to help the leaders and managers of the enterprise analyze and check whether the business activities of the enterprise comply with the regulations; Inspect the degree of completion of the plan indicators such as capital, cost and benefit of the enterprise; Analyze and evaluate the achievements and deficiencies in operation and management, and take measures to improve economic efficiency; Use the information in the financial and accounting reports and other data to analyze and provide a basis for the preparation of the next plan.

    2) For investors, creditors and other stakeholders, the investors of the enterprise, as the providers of enterprise risk capital, are the most important users of accounting information outside the enterprise. The information of financial and accounting statements will be used as one of the important bases for investors to judge investment risks and investment returns, determine investment directions, consider the performance of fiduciary responsibilities of business managers, and determine the personnel arrangements and treatment of enterprises. (3) For the financial, tax, banking and audit departments:

    The finance and taxation departments should understand whether the fund-raising and utilization of the enterprise is reasonable, check the completion and settlement of the enterprise's tax and profit plans, and whether there is any violation of the tax law and financial discipline, so as to better play the supervisory function of finance and taxation; The banking sector examines the use of enterprise liquidity, analyzes the degree of material guarantee of enterprise bank loans, studies the normal demand for enterprise funds, understands the repayment of bank loans and the implementation of credit discipline, and gives full play to the role of bank economic supervision and economic leverage; The audit department understands the financial status and operation of the enterprise, as well as the financial policies, laws and regulations, and discipline enforcement, so as to provide the necessary information for the financial audit and economic benefit audit. (4) For the competent authorities: assess the business performance of the subordinate units and the implementation of various economic policies, and summarize the achievements and promote advanced experience through the comparative analysis of the indicators of the subordinate units in the same period; Analyze the causes of the problems found, take measures to overcome the weak links; It reflects the implementation of the national economic plan within a certain scope and provides a basis for the state's macroeconomic management.

  5. Anonymous users2024-02-03

    Summary. Financial statements include a balance sheet, income statement, cash flow statement or statement of changes in financial position, schedules and notes. Financial statements are the main component of financial reporting.

    Hello dear<>The financial statements are for the owners, creditors, ** and other interested parties and the public.

    The financial statements include a balance sheet, a profit and loss account, a statement of current cash flows, a statement of changes in financial position, schedules and notes. Financial statements are a major component of a financial remorse report.

    The financial statements are prepared in accordance with accounting standards, and reflect the financial status and operation of the accounting entity to the owners, the debtors, the parties involved in the financial situation and the public.

    Accounting statements should be submitted to the owners, creditors, relevant parties, local financial and taxation authorities, depositary banks, and competent departments on a regular basis.

  6. Anonymous users2024-02-02

    Hello, glad to answer for you! Financial report refers to the general recall document provided by the accounting entity to the outside world to reflect the status and operating results and other information. Financial reporting information is generated after processing the economic activities of an enterprise under certain basic assumptions and in compliance with certain accounting principles.

    Directory. What information do financial statements provide for financial management?

    Hello, glad to answer for you! Financial statements are static and dynamic statements of the results of enterprise operation and management and assets, including balance sheet, income statement, cash flow statement, and statement of changes in owners' equity.

  7. Anonymous users2024-02-01

    The financial statements of a business include a balance sheet, an income statement, a cash flow statement, a statement of changes in owners' equity, and notes to the financial statements.

    Balance sheet. The balance sheet is an accounting statement that reflects all the assets, liabilities and owners' equity of an enterprise on a specific date (such as the end of the month, the end of the quarter, and the end of the year), which shows the economic resources owned or controlled by the enterprise on a specific date, the existing obligations assumed and the owner's claim to net assets, and is a static statement that reveals the financial status of the enterprise at a certain point in time.

    It can reflect the maturity status of the enterprise's assets, liabilities and capital, as well as the long-term solvency, short-term solvency and profit distribution ability.

    Running the balance sheet (or income statement). The income statement reflects the production and operation results of an enterprise in a certain accounting period (such as monthly, quarterly, semi-annual or annual), and comprehensively reveals the various incomes, expenses, costs or expenses realized by the enterprise in a specific period, as well as the profits or losses incurred by the enterprise.

    Cash flow statement. The cash flow statement refers to the increase or decrease of cash (including bank deposits) of an enterprise in a fixed period (usually monthly or quarterly), which mainly reflects the impact of each item in the balance sheet on cash flow, and is divided into three categories of activities: operation, investment and financing according to its use. The main function of the cash flow statement is to analyze whether the company has enough cash to meet expenses in the short term, especially the ability to pay bills.

    Statement of Changes in Owners' Equity. The statement of changes in owners' equity is a statement that reflects the increase or decrease of the various components constituting the owner's equity in the current period, reflects the increase or decrease of the total amount of owner's equity (shareholders' equity) of the enterprise in the current period, and also includes structural changes, especially the gains and losses of the owner's equity directly recorded in the person.

    Through the statement of changes in owners' equity, you can not only see the information of the increase or decrease of the total amount of owners' equity, but also provide structural information on the increase and decrease of owners' equity, especially the source of the increase and decrease of owners' equity.

    Notes to the financial statements. The notes to the financial statements are the text descriptions or detailed information of the items listed in the balance sheet, income statement, cash flow statement and statement of changes in owners' equity, etc., and are supplementary explanations to the financial statements.

    The notes to the financial statements generally include the following items: the basic information of the enterprise; Basis for preparation of financial statements; Statement of compliance with accounting standards for business enterprises; significant accounting policies and accounting estimates; Explanation of accounting policies and correction of changes in accounting estimates and correction of errors; Descriptions of important report items; Other important matters that need to be explained, such as contingencies and commitments, non-adjusting events after the balance sheet date, related party related party chain cover orange system and related party transactions, etc.

    In the financial statements, if the audit report of the accounting firm is attached, its credibility will be enhanced. At the annual general meeting of shareholders, the financial statements are generally accompanied by a report on the audit of the group. In the annual report of a listed company, in accordance with the requirements of the listing rules, in addition to the company's financial statements, it is also necessary to publish a number of documents such as the company's main business report, enterprise management report, and investment project progress report.

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