Capstone Discussion Question
The major purpose of financial statement is to provide an overview of the company 's overall performance of the company 's operations and also assess the company 's worth during the year . Financial statement not only assists the financial managers but also the outsiders like creditors stockholders etc . The financial statements of any company provides an overall regarding the stockholders , in assessing the company 's growth investment opportunity ,dividend pro etc after that note all the stakeholders made appropriate decisions regarding the firm 's future 's perspective . Financial statements are also helpful
in submitting the tax return of the year (Besley , Brigham , 2001 . In basic terms financial statement is comprises on Profit Loss Statement , Balance Sheet Statement of cash flows , and on Statement of Changes in Equity
There are mainly four types of information is available in financial statements 1 ) Profit Loss Statement 2 ) Balance Sheet 3 ) Statement of cash flows and 4 ) Statement of Changes in Equity . All the statements have own importance . Profit Loss Statement debates over the company 's revenue generation power , cost behavior and structure and in the end on Net Income . Balance Sheet provides a more clear reflection of any company 's performance in recent past . The balance sheet is an ideal starting point for the analysis of any organization 's resources and obligations including the liquidity and solvency of the organization The balance sheet provides an overview regarding the company 's financial position . In the same time the balance sheet also discussed about the...