Discuss the term financial statement taking into account its scope,objective and components.

Solutions

Expert Solution

Financial Stament are the formal written records of an organisation.

Scope: The Financial Statements record the financial transactions of an organization.

Objective: The purpose of preparation of Financial Statement is to provide financial information to the stakeholders of the Organisation in a systematic way.

Components : Following are the components of Financial Statement:-

1. Balance Sheet: It records the monetory rights and obligation in form of assets and libilities respectively

2. Income Statement : It reciords the Income and Expenses and then calculates net gain or loss.

3.Statement of Cash flows : It records the cash outgoings and incomings and hence shows the total net outflow or inflow along with the heads.

4.Statement of changes in equity: It shows shows the changes in the elements of equity from previous year.

5.Notes to finacial statements: These notes provide the explanation and additional information about the operations of the organisation.

Please upvote/thumbs up if the solution was helpful

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

11. Which of the following is a correct statement? A. The objective of short-term financial management...

11. Which of the following is a correct statement? A. The objective of short-term financial management is to maximize carrying costs. B. Managing short-term cash flows involves minimizing liquidity. C. In managing short-term finances, a financial manager should seek the optimal level of investment in fixed assets. D. A financial manager should use a cash budget to identify short-term financial needs. E. In an ideal economy, the optimal level of net working capital is positive. 12. A firm needs to...

Define the term balance of payments (BOP). Discuss the role of the current account, financial account...

Define the term balance of payments (BOP). Discuss the role of the current account, financial account and the official reserves accounts within the balance of payments.

Define financial management. Discuss in detail the scope of financial management.

The Scope and Environment of Financial Management Financial Statements and Financial Statement Analysis Directions: Look for...

The Scope and Environment of Financial Management Financial Statements and Financial Statement Analysis Directions: Look for a company that is publicly listed in Bahrain Bourse. Secure a copy of their Financial Report (Latest). Please do not forget to attach the copy of the financial statements (Income Statement, Balance Sheet). Using the Financial Report, provide the following ; Requirements; Compute and provide the general interpretation for the following Financial Ratio; Current Ratio Quick Ratio Average Collection Period Debt Ratio Net Profit...

Question 1 Required: a) . Discuss the objective of financial statement analysis. (5 Marks) b) Do...

Question 1 Required: a) . Discuss the objective of financial statement analysis. b) Do you think financial reporting plays any role in the capital markets? Explain in your own words. c) . Why do you think it is important to review the strategy of a company before and after completing a financial statement analysis? Explain. d). The following note appears in the financial statements of a company: “The financial statements have been prepared on the historical cost basis, except for...

Define Portfolio Policy Statement (IPS) and Discuss its major components with Examples.

Describe the basic components of quality management, structure, process, and outcome. Discuss the purpose and scope...

Describe the basic components of quality management, structure, process, and outcome. Discuss the purpose and scope of external review and accreditation of managed care plans.

The key components of the conceptual framework include the objective of financial reporting, qualitative characteristics, the...

The key components of the conceptual framework include the objective of financial reporting, qualitative characteristics, the going concern assumption, and measurement of the elements of financial statements. the objective of financial reporting, qualitative characteristics, the going concern assumption, elements of financial statements and the measurement of those elements. the objective of financial reporting, qualitative characteristics and the going concern assumption. the objective of financial reporting, qualitative characteristics, the going concern assumption, and elements of financial statements.

Define objective of the Statement of Cash Flows and the purpose of it for financial statements...

Define objective of the Statement of Cash Flows and the purpose of it for financial statements users (i.e., what should it help financial statements users do). Include the relevant citations from the FASB codification

Question 01- Explain the term Research Proposal and discuss its components. Question 02- Select a research...

Question 01- Explain the term Research Proposal and discuss its components. Question 02- Select a research problem of your choice in the field of Human Resources Management and prepare a short proposal. . Note: Please give answer in detail of both question the second question need the short proposal please give a good proposal with its components Note: Plagiarism is strictly prohibited please do not copy from internet

Subjects