Customer service personal statement template, All organizations, whether private, public, or non-profit, need to prepare financial statements in their performance to present financial accountability and accuracy for their stakeholders and individuals with an interest in the company. These statements allow management to generate business decisions, enable creditors to assess loan applications, and provide people with information to make investment decisions.
A organization’s income statement may also be called the P&L (Profit and Loss) and Record of Operations. The income statement demonstrates revenue earned (the top line) in the sales of goods and services before expenses are removed, is changed into the web earnings (bottom line), the final result after earnings and expenses will be accounted for. The earnings statement documents whether the firm made a profit or not through a documented time period.
The balance sheet, as also referred to as statement of financial position, is a overview of a corporation’s balances as of a specific date, generally the last day of this fiscal year. The balance sheet is composed of 3 parts: assets, liabilities, and possession equity or net worth, with assets in 1 segment and obligations and net worth in another, with the 2 sections balancing. The difference between assets and liabilities will be a organization’s net worth or equity. A company’s assets also equal their liabilities and owner’s equity, which may reveal how the assets were funded, either by borrowing money (accountability ) or employing the owner’s money (owner equity).
The statement of cash flows reveals how changes in the balance sheet and income statement affect cash and cash equivalents. It also demonstrates operating, investing, and financing activities. The statement of cash flows helps investors and management ascertain the short-term viability of a company, specifically their ability to cover expenses. As a CPA I examine these 3 financial statements along with their supporting documentation provided by the company and assesses the general accounting principles utilized. From this info I then make an audited financial statement which will include an opinion, either qualified or unqualified, in regards to the essence of the financial documents.
Occasionally an opinion will not be given within an audited financial statement. This might be caused by the fact that there have been trivial documents available to correctly prepare the audit, or there have been issues that will need to be dealt with before assessing the truth of the financial documents. A deficiency of opinion usually suggests that a company should improve their accounting procedures so they can satisfy the requirements of this US GAAP (Generally Accepted Accounting Principles).