Devin Arbuthnot
Purpose of Financial Statements
The balance sheet, statement of cash flow, and income statement make up the three basic financial statements. These three reports contain all the information needed by internal and external business elements to make decisions about the business, including how to save on costs or when the business needs to raise more funds. Using these three reports, any business manager will get a view of the company’s financial standing, the income and outgoing funds, and a breakdown of incoming funds.
The purpose of a balance sheet is to show the current status of a company’s assets, liabilities, and its owners’ equity. The assets part of the balance sheet shows the company how much money they have, how much
Purpose of Financial Statements
The balance sheet, statement of cash flow, and income statement make up the three basic financial statements. These three reports contain all the information needed by internal and external business elements to make decisions about the business, including how to save on costs or when the business needs to raise more funds. Using these three reports, any business manager will get a view of the company’s financial standing, the income and outgoing funds, and a breakdown of incoming funds.
The purpose of a balance sheet is to show the current status of a company’s assets, liabilities, and its owners’ equity. The assets part of the balance sheet shows the company how much money they have, how much