Haleema Zaheer FINANCIAL INFORMATION A Company Financial statements provide a variety of financial information that investors

Haleema Zaheer

FINANCIAL INFORMATION A Company
Financial statements provide a variety of financial information that investors, creditors and analysts use to access the financial performance of a company. Much of the information presented in a financial report is required by law or according to accounting standards. Annual accounts are an important management of the company to communicate the successes of past and future expectations. By publishing financial statements, management can communicate with external stakeholders about the performance of the company.

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LIST DOWN FINANCIAL REPORTS Profit and loss statements:
The profit and loss statement lists sales and expenses and is usually recognized monthly, quarterly or annually. He tells you how much you will really earn or lose. The profit and loss account may help in the development of sales targets and a reasonable sale price of goods / services using such tools as profitability, profit margin and margin calculators. For more information on these financial instruments, see Analyzing finances.

Profit and loss statements:
The profit and loss statement lists sales and expenses and is usually recognized monthly, quarterly or annually. He tells you how much you will really earn or lose. The profit and loss account may help in the development of sales targets and a reasonable sale price of goods / services using such tools as profitability, profit margin and margin calculators. For more information on these financial instruments, see Analyzing finances.

Income statements:
As the name of this account itself indicates, it is made up of two accounts I.E trading Account and profit & Loss Account. Trading concerns which purchase goods from one market and sell it in another market.

Cash flow statements:

A financial statement is a financial statement that provides aggregated data with respect to all incoming cash flows that an enterprise receives from its current operations and from external sources of investment, as well as all cash outflows that pay for commercial activities and investments. . during a certain period.

Cash flow direct method:
The direct method is a method of creating the financial statement in which the information on the actual cash flow of the corporate operations segment of the company is used instead of the values of accrual accounting.

Cash flow indirect method:
The indirect method is an accounting treatment used to generate a cash flow statement that a company can use during a given reference period.

Balance sheet:
A Balance sheet is prepared from a trial Balance after the balances of nominal account are transferred either to the trading Account or Profit and Loss Account. The remaining balances of personal and Real Account represents either assets or liabilities at the closing date. These Assists and liabilities are shown in the balance sheet in the classified form –the assets being shown on the right hand side and the liabilities on the left hand side.

LEDGER:
When all the transactions for a given period have been journalized, the next thing is to classify them according to the accounts affected. All the similar transactions must be bought together. For instance, all transaction relating to cash must be put in one place. Similarly, all transactions with a customer or a supplier must also be assembled at one place. The book in which this classification is done is called ledger.

Inventory stock:
Inventory and Inventory Control are terms used interchangeably in accounting and product supervision. In fact, the term “inventory control” is an appropriate term. These terms apply both to genuine, marketable products and to materials needed for the manufacture of products for sale. Because the terms are interchangeable, it is easy to confuse what is actually being pursued in the business. Accurate inventory control is important to ensure that your company has the right materials and products to meet customer orders without interrupting orders.

IMPORTANCE OF FINANCIAL REPORTS:
The importance of financial reports is to provide information about the operating results, financial position and cash flows of an organization. These information are used by readers of financial statements to make decisions about the allocation of resources. At a refined level, each degree has a different purpose. The profit and loss accounts informs the reader about a company’s ability to generate profits. It also shows the sales volume and nature of different types of spend, depending on how cost information is added. The purpose of the balance is to inform the reader about the current status of the transaction on the balance sheet date. This information is used to calculate a company’s liquidity, funding and debt situation and forms the basis for a number of liquidity indices. Finally, the purpose of the cash flow statement is to show the type of deposits and withdrawals in terms of different categories. This information is very useful as the cash flows do not always match the income and expenses shown in the income statement.

NEEDS 0F FINANCIAL REPORTS:
Needs of financial reports Able to know firm’s financial position. provide the information regarding stability to stake holders. It can be identify the trends and relationship between financial statement items. It gives systematic recordings. Analyzing and summarizing. It helps to give information for people outside the organization. It must contain understandability and reliability reports of firm.

STAKEHOLDERS OF FINANCIAL REPORTS:
These are the users of financial reports: Shareholders, investors, senior management, tax department, banks, competitors, employees, governments, lenders, suppliers, company management, owners , general public.

INTERNAL USERS:

1. Employees
A person who is normally under the senior management and is hired by another person to provide a service, especially for wages or salaries, under the control of the other.

2. Owners
The owner’s capital represents the owner’s investment in the business, minus the withdrawals or withdrawals from the business plus the net income (or less the net losses) since the business started.

3. Shareholders
A Shareholder, commonly known as a shareholder, is any person, company or institution that owns at least one share of the shares of a company. Because the shareholders are the owners of the company, the benefits of the company’s success are obtained in the form of a higher valuation of the shares.

4. Company management
Organization commissioned by investors / owners to manage mutual funds, unit trusts, hotels, resorts and offshore companies for an administration fee. A company that is set up to manage a group of properties, a unit trust, an investment, etc.

5. senior management

Top management in English noun. The most important personnel of an organization or company, including the heads of various divisions or departments headed by the executive director, Also called: top management.

EXTERNAL USERS:
1. Creditors

A creditor can be a bank, provider or person who has provided credit to a company. In other words, a company has money for its creditors. The amount owed to the creditors is recorded in the balance sheet of the company as a liability.

2. tax department
Tax accounting is a structure of accounting methods focused on taxes instead of the appearance of public financial statements.

3. Lender Investors

An investor is a unit that writes money to a company with the expectation of earning a return. The nature of the agreements can take many forms, such as a guarantee to pay creditors, a loan, equity, tangible assets or even the contribution of workers.
4. Customers
A client is an entity that buys goods or services to third parties. Client profit and recruitment is a core business of the group, since this group generates revenue for the business.

5. Suppliers
A provider, also called a vendor, person or company, provides goods and / or services to other companies, such as developing staff, towards the customer.

6. Banks

It is a financial institution that provides services to companies, institutions and people. The service offers current accounts, deposits and savings, as well as credit for companies

Haleema Zaheer

FINANCIAL INFORMATION A Company
Financial statements provide a variety of financial information that investors, creditors and analysts use to access the financial performance of a company. Much of the information presented in a financial report is required by law or according to accounting standards. Annual accounts are an important management of the company to communicate the successes of past and future expectations. By publishing financial statements, management can communicate with external stakeholders about the performance of the company.

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For You For Only $13.90/page!


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LIST DOWN FINANCIAL REPORTS Profit and loss statements:
The profit and loss statement lists sales and expenses and is usually recognized monthly, quarterly or annually. He tells you how much you will really earn or lose. The profit and loss account may help in the development of sales targets and a reasonable sale price of goods / services using such tools as profitability, profit margin and margin calculators. For more information on these financial instruments, see Analyzing finances.

Profit and loss statements:
The profit and loss statement lists sales and expenses and is usually recognized monthly, quarterly or annually. He tells you how much you will really earn or lose. The profit and loss account may help in the development of sales targets and a reasonable sale price of goods / services using such tools as profitability, profit margin and margin calculators. For more information on these financial instruments, see Analyzing finances.

Income statements:
As the name of this account itself indicates, it is made up of two accounts I.E trading Account and profit & Loss Account. Trading concerns which purchase goods from one market and sell it in another market.

Cash flow statements:

A financial statement is a financial statement that provides aggregated data with respect to all incoming cash flows that an enterprise receives from its current operations and from external sources of investment, as well as all cash outflows that pay for commercial activities and investments. . during a certain period.

Cash flow direct method:
The direct method is a method of creating the financial statement in which the information on the actual cash flow of the corporate operations segment of the company is used instead of the values of accrual accounting.

Cash flow indirect method:
The indirect method is an accounting treatment used to generate a cash flow statement that a company can use during a given reference period.

Balance sheet:
A Balance sheet is prepared from a trial Balance after the balances of nominal account are transferred either to the trading Account or Profit and Loss Account. The remaining balances of personal and Real Account represents either assets or liabilities at the closing date. These Assists and liabilities are shown in the balance sheet in the classified form –the assets being shown on the right hand side and the liabilities on the left hand side.

LEDGER:
When all the transactions for a given period have been journalized, the next thing is to classify them according to the accounts affected. All the similar transactions must be bought together. For instance, all transaction relating to cash must be put in one place. Similarly, all transactions with a customer or a supplier must also be assembled at one place. The book in which this classification is done is called ledger.

Inventory stock:
Inventory and Inventory Control are terms used interchangeably in accounting and product supervision. In fact, the term “inventory control” is an appropriate term. These terms apply both to genuine, marketable products and to materials needed for the manufacture of products for sale. Because the terms are interchangeable, it is easy to confuse what is actually being pursued in the business. Accurate inventory control is important to ensure that your company has the right materials and products to meet customer orders without interrupting orders.

IMPORTANCE OF FINANCIAL REPORTS:
The importance of financial reports is to provide information about the operating results, financial position and cash flows of an organization. These information are used by readers of financial statements to make decisions about the allocation of resources. At a refined level, each degree has a different purpose. The profit and loss accounts informs the reader about a company’s ability to generate profits. It also shows the sales volume and nature of different types of spend, depending on how cost information is added. The purpose of the balance is to inform the reader about the current status of the transaction on the balance sheet date. This information is used to calculate a company’s liquidity, funding and debt situation and forms the basis for a number of liquidity indices. Finally, the purpose of the cash flow statement is to show the type of deposits and withdrawals in terms of different categories. This information is very useful as the cash flows do not always match the income and expenses shown in the income statement.

NEEDS 0F FINANCIAL REPORTS:
Needs of financial reports Able to know firm’s financial position. provide the information regarding stability to stake holders. It can be identify the trends and relationship between financial statement items. It gives systematic recordings. Analyzing and summarizing. It helps to give information for people outside the organization. It must contain understandability and reliability reports of firm.

STAKEHOLDERS OF FINANCIAL REPORTS:
These are the users of financial reports: Shareholders, investors, senior management, tax department, banks, competitors, employees, governments, lenders, suppliers, company management, owners , general public.

INTERNAL USERS:

1. Employees
A person who is normally under the senior management and is hired by another person to provide a service, especially for wages or salaries, under the control of the other.

2. Owners
The owner’s capital represents the owner’s investment in the business, minus the withdrawals or withdrawals from the business plus the net income (or less the net losses) since the business started.

3. Shareholders
A Shareholder, commonly known as a shareholder, is any person, company or institution that owns at least one share of the shares of a company. Because the shareholders are the owners of the company, the benefits of the company’s success are obtained in the form of a higher valuation of the shares.

4. Company management
Organization commissioned by investors / owners to manage mutual funds, unit trusts, hotels, resorts and offshore companies for an administration fee. A company that is set up to manage a group of properties, a unit trust, an investment, etc.

5. senior management

Top management in English noun. The most important personnel of an organization or company, including the heads of various divisions or departments headed by the executive director, Also called: top management.

EXTERNAL USERS:
1. Creditors

A creditor can be a bank, provider or person who has provided credit to a company. In other words, a company has money for its creditors. The amount owed to the creditors is recorded in the balance sheet of the company as a liability.

2. tax department
Tax accounting is a structure of accounting methods focused on taxes instead of the appearance of public financial statements.

3. Lender Investors

An investor is a unit that writes money to a company with the expectation of earning a return. The nature of the agreements can take many forms, such as a guarantee to pay creditors, a loan, equity, tangible assets or even the contribution of workers.
4. Customers
A client is an entity that buys goods or services to third parties. Client profit and recruitment is a core business of the group, since this group generates revenue for the business.

5. Suppliers
A provider, also called a vendor, person or company, provides goods and / or services to other companies, such as developing staff, towards the customer.

6. Banks

It is a financial institution that provides services to companies, institutions and people. The service offers current accounts, deposits and savings, as well as credit for companies

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