What is the relationship between the financial statements?

In financial statements, some of the collusion relationships are precise, i.e., the various items can form an equation between them. For example, assets = liabilities + owners' equity, income - expenses = profits; For example, the "undistributed profits" in the balance sheet are equal to the "undistributed profits at the beginning of the year" and "undistributed profits" in the profit distribution statement, respectively. These collusion relationships are the basic collusion relationships, and they are also the most basic measurement criteria for the report preparer to judge whether the report preparation is accurate.

However, for the analysis of financial statements, another less precise collusion relationship is more important, that is, there is a collusion relationship between certain items in the financial statements, which can form an equation under certain assumptions and conditions. For example, the difference between the "net increase in cash and cash equivalents" in the cash flow statement and the year-end and beginning of the "monetary funds" in the balance sheet is generally equal, provided that there are no cash equivalents in the enterprise. For another example, there is a collusion relationship between "main business income" in the income statement, "cash received from the sale of goods and provision of services" in the cash flow statement, and "accounts receivable" in the balance sheet. There is a collusion relationship between items such as "cost of main business" in the income statement, "cash for goods purchased and services paid" in the cash flow statement, and "accounts payable" in the balance sheet.

The report analyst needs to know under what circumstances these items will form an equation with each other, under what circumstances they will not form an equation with each other, and under what circumstances the collusion between these items will be broken. The analyst should examine the relationship between these related items in the report, and find relevant evidence from the report and the notes to the report, so as to form a judgment on the object of analysis.

Financial Xiaotang shared the three major collusion relationships in the financial statements, let's listen to it and see if you need to add it.

Collusion relationship is a commonly used term in the preparation of accounting statements, which refers to the internal logical correspondence between an accounting statement and another accounting statement and the items of this accounting statementBalance sheet, income statement andCash flow statementThe three collusion relationships are basically balanced.

The relationship between the balance sheet and the income statement is mainly: the undistributed profits in the balance sheet.

The undistributed profit item of the income statement minus the opening number of the period is equal to the undistributed profit item of the income statement.

The relationship between the balance sheet and the cash flow statement is mainly the cash, bank deposits and other monetary funds on the balance sheet.

The closing number minus the opening number of other items is equal to the cash and cash equivalents in the cash flow statement.

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The main types of collusion relationships in summary accounting statements are as follows:

2) Correspondence: according to the double-entry accounting method.

For each economic transaction, the same amount is registered in two or more interrelated accounts, indicating that the ins and outs of the movement of funds and the correspondence between them are fixed.

3) Sum-difference relationship: Some check-in relationships in the report show that one indicator is equal to the sum or difference of several other indicators.

4) Collusion relationship: Some collusion relationships in the report are shown as the product or quotient of one item equal to several other items.

5) Dynamic and static collusion relationship: the special ** and special appropriation tables are "dynamic tables" and the fund balance sheet is "static tables". Some of the metrics reflected in the "Static Table" and the "Dynamic Table" are consistent, which creates a collusion relationship in the report.

6) Supplementary audit relationship: Some indicators reflected in the report are supplemented according to other items or tables in order to understand its detailed accounting data and calculation.

The collusion relationship between the three major financial statements is as follows:

The basic collusion relationship between the balance sheet, income statement and cash flow statement includes: assets = liabilities + owners' equity; Revenue-Expenses = Profit; Cash inflow - cash outflow = net cash flow; The balance sheet, income statement and cash flow statement are respectively colluded with their schedules, notes, supplementary information, etc.

1. The collusion relationship between the balance sheet and the income statement: the number of undistributed profits at the end of the period = the beginning of the period + the cumulative net profit of the current year + ( - profit and loss adjustment of previous years - distributed profits.

2. The relationship between the balance sheet and the cash flow statement: the net change amount of cash flow in the cash flow statement = the closing balance of cash and cash equivalents in the balance sheet - the opening balance of cash and cash equivalents. The result of the undistributed profit in the income statement is the same as the undistributed profit in the balance sheet.

In the balance sheet, the difference between the closing balance of cash and its equivalents and the opening balance is the same as the net increase in cash flow statement.

Cash received from the sale of goods and the provision of labor services in the cash flow statement = main business income in the income statement (1 + tax rate) + other business income in the income statement + (opening balance of notes receivable - closing balance of notes receivable) + (opening balance of accounts receivable - closing balance of accounts receivable) + (closing balance of accounts receivable - opening balance of accounts receivable) - closing balance of bad debt provision for accounts receivable.

Tax refund received = (opening balance of subsidy receivable - closing balance of subsidy receivable) + subsidy income + cumulative amount of credit amount of income tax in the current period.

Other cash received related to operating activities = details of non-operating income, credit amount of the current period + details of other business income, credit amount of the current period + details of other receivables, credit amount of the current period + details of other payables, credit amount of the current period + interest income from bank deposits.

1. The basic collusion relationship between the items in the accounting statements.

The basic collusion relationship between accounting statement items includes: assets = liabilities + owners' equity; Revenue-Expenses = Profit; Cash inflow - cash outflow = net cash flow; The balance sheet, income statement and cash flow statement are respectively colluded with their schedules, notes, supplementary information, etc.

2. The relationship between the balance sheet and the income statement.

According to the short-term investment and long-term investment in the balance sheet, review and calculate the reasonableness of the "investment income" in the income statement. For example, if there are anomalies such as whether there are no investment items in the balance sheet but investment income is listed in the income statement, and the investment income greatly exceeds the principal of the investment project.

3. The relationship between the cash flow statement and the relevant items of the balance sheet and income statement.

Whether the difference between the end of the period and the beginning of the balance sheet "monetary funds" is reasonable and the relationship between the "net increase in cash and cash equivalents" in the cash flow statement. Most of the contents included in the "cash and cash equivalents" of general enterprises are consistent with the caliber of "monetary funds"; Cash received from the sale of goods and the provision of labor services = (main business income + other business income) (1 + 17) + increase in advance accounts receivable - increase in accounts receivable - increase in notes receivable.

Collusion relationship is a commonly used term in the preparation of accounting statements, it refers to the internal logical correspondence between an accounting statement and another accounting statement and the item of the accounting statement, in the basic collusion relationship of accounting statements, the balance sheet, income statement and cash flow statement are the basic balance relationship.

The collusion relationship between the three financial statements, what you are talking about should be the storyline in a movie, I don't know if this movie is a curry detective starring Stephen Chow, if you say it is wrong, I hope to understand.

<> Financial Literacy: Relationships in Financial Statements.

First, the collusion relationship of the report.

The so-called relationship between the brothers and the audit of Gouzhou essentially refers to the relationship between the relevant figures in the account books and financial statements, which can be used for mutual examination and verification. In the preparation of financial statements, it is important to audit the relationship. For example, after we have completed the production of the three major financial statements, we cannot check them one by one because of the large number of figures, but we can check whether the statements are correct through the collusion relationship.

If the relationship between the reports or items is not equal or incorrect, it is likely that there is a problem with the preparation of the report.

Second, the basic relationship between the reports.

As we all know, there are three major financial statements, namely: balance sheet, income statement, and cash flow statement. And these three reports, each report item has a lot of collusion between the relationship.

But then again, no matter how many collusion relationships there are, the basic collusion relationship must be satisfied in the end:

Balance sheet: assets = liabilities + owners' equity;

Income Statement: Profit = Income - Expenses;

Cash Flow Statement: Net Cash Flow = Cash Inflow - Cash Outflow.

These three relationships are the basic relationships between the internal items of the financial statements. If the final result does not meet the conditions, it is likely that there is a problem with the report, such as incorrect numbers, wrong formulas, etc.

3. The collusion relationship between the three major reports.

Although the three reports are independent, they are inextricably linked to each other, and this connection is the collusion relationship, and this collusion relationship is reflected by the same number of the same or different items, here are a few examples. For example, there is an item in the income statement called undistributed profits, and there is also undistributed profits in the balance sheet, and the result is the same. For example, the difference between the closing balance and the opening balance of cash and its equivalents in the balance sheet is the same as the net increase in cash and its equivalents in the cash flow statement.

1) Balance the collusion relationship. The balance sheet is divided into two sides, one side reflects the rolling occupation of funds, and the other side reflects the funds**, and the two parties must maintain a balance.

2) Correspondence relationship. According to the double-entry accounting method, each economic transaction is registered in two or more interrelated accounts with equal amounts, indicating that the ins and outs of the movement of funds and the correspondence between them are fixed.

3) Relationship with poor collusion. Some of the relationships in the report are shown as one metric equal to the sum or difference of several other metrics.

4) Collusion relationship. Some of the relationships in the report are represented by the fact that one item equals the product or quotient of several other items.

5) The relationship between dynamic and static collusion. Earmarked** and earmarked appropriation tables are "dynamic tables" and fund balance sheets are "static tables". Some of the indicators reflected in the "static table" and the "dynamic table" are consistent and consistent, and the relationship between them is formed in the report.

6) Supplement the collusion relationship. Some of the indicators reflected in the report are supplemented according to separate items or tables in order to understand their detailed accounting information and calculations.

The collusion relationship in the financial statements refers to the relationship between the items in the financial statements, which corroborate and influence each other.

By understanding the relationship between the financial statements, you will basically have a general understanding of how each business affects each item in the financial statements, and how the various items in the financial statements affect each other.

There is a collusion relationship between all financial statement items, which is carefully designed to ensure the accuracy, reliability and consistency of the financial statements. The existence of collusion relationship helps to ensure the credibility and reliability of each item in the financial statements, reduces the risk of errors, and improves the quality and value of the financial statements.

Common financial statement collusion relationships include the collation between the balance sheet and the income statement, the collusion between sales revenue and accounts receivable, and the collusion between inventory and cost of sales. Through the analysis and research of collusion relationship, it can provide reliable financial data support for enterprises and provide a good reference for enterprise decision-making.

Composition of the financial statements:

A complete set of financial statements includes a balance sheet, an income statement, a cash flow statement, a statement of changes in owners' equity (or a statement of changes in shareholders' equity) and notes to the financial statements.

1. Balance sheet statement of financial position It reflects the current status of assets, liabilities and capital of the enterprise. Long-term solvency, short-term solvency and profit distribution ability, etc.

2. Income statement (or income statement) (income statement profit and loss account) It reflects the amount and structure of the current company's income, expenses and gains and losses that should be recorded in the current profit.

3. Cash Flow Statement It reflects the ins and outs of the cash flow of the enterprise, which is divided into three parts: operating activities, investment activities and financing activities.

4. Statement of change in equity It reflects the increase or decrease of the total amount of owners' equity (shareholders' equity) of the enterprise in the current period, as well as structural changes, especially the gains and losses directly credited to the owner's equity.

5. Notes to financial statements generally include the following items: the basic information of the enterprise, the basis for the preparation of financial statements, the statement of compliance with the accounting standards for business enterprises, important accounting policies and accounting estimates, explanations of changes in accounting policies and accounting estimates and correction of errors, and explanations of important statement items.