Prosecution closing statement template, All organizations, whether private, public, or nonprofit, have to prepare financial statements on their performance to provide fiscal accountability and accuracy for their own stakeholders and people with an interest in the business. These statements enable management to generate business decisions, so enable creditors to evaluate loan programs, and provide people with information to generate investment decisions.
A organization’s income statement may also be known as the P&L (Profit and Loss) and Statement of Operations. The income statement shows how revenue earned (the best line) in the sales of goods and services before expenses are removed, is changed into the net income (bottom line), the end result after revenue and expenditures are accounted for. The earnings statement records whether the company made a profit or not during a reported time period.
An accountant will compile the data supplied by the client to a suitable financial presentation. This is the sole financial statement a non-certified accountant may prepare. The accountant will read the invoices and issue a document. If the organization has elected to omit some disclosures, this has to be contained in the accountant’s report of these financial statements, as well as if the disclosures were included; they may have influenced the consumer’s decisions.
The statement of cash flows reveals how changes in the balance sheet and income statement impact cash and cash equivalents. Additionally, it demonstrates operating, investing, and financing activities. The statement of cash flows aids management and investors determine the short-term viability of a business, specifically their ability to cover costs. As a CPA I examine these three financial statements and their supporting documentation provided by the business and assesses the overall accounting principles utilized. From this info I then create an audited financial statement which will include an impression, either qualified or unqualified, about the essence of the financial documents.
In composed financial statements, the company, not the accountant, but is responsible for the accuracy and completeness of the financial records. Since the statements were not audited or reviewed, they are not certified by a Certified Public Accountant (CPA). No opinion or assurance is expressed in the document as to whether the compiled statements are free of material misstatements or false/missing information or if they are found to be accurate, complete and fairly presented to fulfill the requirements of this US GAAP (Generally Accepted Accounting Principles).