FINANCIAL STATEMENTS Part 13. Lesson Objectives To be able to identify financial Statements. To be able to describe the purpose of financial statements.

Slides:

Advertisements

Similar presentations

The Profit and Loss Account

Advertisements

The Balance Sheet. Lesson Aims: To understand what the balance is used for and who uses it To understand what information is used to make a balance sheet.

Session 7 Case studies and Solutions Nursery Management Understanding and Managing Finance.

FINAL ACCOUNTS.

Balance Sheets Assets = Liabilities + Owner’s Equity.

Lesson 5 Cash Flow Statement Li, Jialong

Basic Financial Concepts

Financing Unit 6.

Questions on Financial Management. Question In your own words, explain the role and importance of financial management to a manufacturer whose objective.

3. 24 Understanding a balance sheet Aims and Objectives Part 2 Basic principles of a balance sheet  Most businesses borrow money to help them to.

IGCSE BUSINESS STUDIES

3. Finance 3.2 Profit and Loss Accounts and Balance Sheets IF I BORROW A MILLION POUNDS AM I A MILLIONAIRE?

Accounts Interpreting Accounts. Key Accounting Documents Public Limited Companies in the UK are required to publish their accounts This will usually consist.

FINANCE BASICS Business Basics. Finance Basics Who cares anyway?  You should  Investors will Why?  Because financial statements tell you the truth.

Section 36.2 Financial Aspects of a Business Plan

FINANCIAL STATEMENTS. Why Use Financial Statements? Investors and bankers Investors and bankers Suppliers and creditors Suppliers and creditors You and.

ACCOUNTING. The system used by an organization to keep a record of all the money that comes in and goes out of a business. –This includes payments received.

Go to the wiki & Save these for later Classifying Accounts Template Preparing the Income Statement Ex 1 Classification Revision Quiz Income Statement Ex.

Goals  Prepare a pro forma cash flow statement.  Prepare a pro forma income statement.  Prepare a pro forma balance sheet.

Financial Statements. Users of financial information.

1 Understanding a balance sheet. Lesson Objective Understand the main elements of a balance sheet. Understand the difference between assets and liabilities.

Part 12 Net Profit.

Stock Market Analysis and Personal Finance Mr. Bernstein The Three Primary Financial Statements September 2015.

Financial Puzzle FINANCIAL STATEMENTS By PresenterMedia.com PresenterMedia.com.

Balance sheet Business Studies.

Financial Accounting 1 Lecture – 41 Profit and Loss Account Shows profit earned or loss sustained from the operations of the business during the period.

Business Technology Mr. Bernstein Greene, pp : Pro Forma Financial Statements December 4, 2013.

4.05 Implement Accounting Procedures To Track Money Flow And To Determine Financial Status. Describe the nature of income statements.

UNIT C ECONOMIC FOUNDATIONS AND FINANCING 6.01 Compare records used in business.

Chapter 4.  Assets have debit balances  Liabilities and Capital have credit balances.

1 Calculating the profit or loss of a business. * Profit (what it is and why it matters) * Purpose and main elements of profit/ loss account All students….

Accounting: Financial Statements!! BBI 2O1. The Balance Sheet Shows a business’s financial position on a particular date The Balance Sheet Equation –

1 The Balance Sheet Higher Grade Business Management 2009.

FINAL ACCOUNTS Trading Account – shows Gross Profit Profit and Loss Account – shows Net Profit Balance Sheet – shows what the business owns and owes and.

FINAL ACCOUNTS  All companies or corporations ( businesses owned by shareholders) must provide a set of final accounts consisting on three statements:

Balance Sheet Audited Active 114, ,666 Current Assets 103, ,673 Fix Assets 218, ,339 Total Passive 93,705 77,844.

BUSINESS ACCOUNTING U23348/U20431/U21076

Unit 5 – Business Accounting

ACCOUNTING & FINANCE Balance Sheet. Introduction and Key Definitions It shows the financial position of a firm at a particular moment in time. what “

GCSE Business StudiesFinance - TERMS This is a cost that does not change with the amount the firm is producing or selling. Usually expressed in terms of.

Financial Statement Basics BDI3C. Major Financial Statements  Balance Sheet Individual: Net Worth Statement  Income Statement  Cashflow Statement.

Stakeholders Inland revenue Banks Shareholders Employees Suppliers Customers.

ACCOUNTING & FINANCE Balance Sheet IGCSE Business Studies.

Session 2 Case studies and Solutions Nursery Management Understanding and Managing Finance.

Financial Analysis of a Business

© Prentice-Hall of India Private Limited, All rights reserved.1 Financial Accounting: A Managerial Perspective Second Edition Prepared by R. Narayanaswamy.

Preparing Financial Documents The Income Statement & Balance Sheet.

Balance sheets.

Announcements It’s LSAT week! I take the test on Saturday. If you are sick, stay AWAY from me Most of IA material will be covered this week Summatives.

TWO IMPORTANT FINANCIAL STATEMENTS SBM 110. INCOME STATEMENT The income statement’s primary role is to show a profit or loss over time. Using the difference.

 Cost of Sales – How much it costs the company to make or buy goods.  Gross profit – profits made before paying bills  Net Profit – profits made after.

Finance for.... Fixed assets 1.Retained profit 2.Share capital 3.Bank loan 4.Hire purchase 5.Leasing Working Capital [to help cash flow] 1.Trade credit.

BBI1O1. The Balance Sheet  The formal way of presenting the financial position for a company is the balance sheet  A balance sheet is a statement showing.

Management of Working Capital. Balance Sheet A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific.

Liquidity 2 lessons covering liquidity. We will look at: a)What is meant by liquidity, measuring and calculating: – Current ratio – Acid test b)Ways to.

Personal Financial Statements Chapter 12 Personal Financial Statements The Balance Sheet.

Double Entry System 3 DRCR FINANCIAL STATEMENTS.

Accounting and Record Keeping It’s Your Business, Take Control… Bottom Line Solution

BALANCE SHEET. Starter – DON’T LOOK IN BOOKS !!! What does a Trading, Profit and Loss Account show? What does an Appropriation Account show? How is it.

Chapter 36 Financing the Business Section 36.1 Preparing Financial Documents Section 36.2 Financial Aspect of a Business Plan Section 36.1 Preparing Financial.

Financial Management. Purpose of Financial Reports Financial Reports – Summarize financial data over a given period of time (shows if the company made.

Accounts. Key Accounting Documents Public Limited Companies in the UK are required to publish their accounts This will usually consist of three key accounting.

Financial Accounts Not for now but later… Some financial disasters to consider, just if you didn’t think the topic was important… Kodak

Accounting Principles Quiz. The Accounting Equation is A. Assets = Capital +Liabilities B. Assets = Capital -Liabilities C. Assets + Capital =Liabilities.

> > > > Understanding Financial Statements. Balance Sheet What is a Balance Sheet? A statement that shows –(1) How much money a company has –(2) How much.

Advanced Financial Accounting FIN-611 Mian Ahmad Farhan Lecture-4 Single Entry.

Income statements Lesson outcome:

إعداد القوائم المالية Preparation of Financial Statements

QuickBooks Accounting 101.

Presentation transcript:

FINANCIAL STATEMENTS Part 13

Lesson Objectives To be able to identify financial Statements. To be able to describe the purpose of financial statements.

How many can you think of?

Activity 1 Using the following words, please complete the blank sheets you have been given. You need to match the correct word with its definition! Statements for fixed assets Customers’ Accounts Bills Suppliers’ Accounts Loan Statements Bank statements

Financial Statements Customers’ Accounts – what we have sold to them and their payments to us. Suppliers’ Accounts – Our purchases from and payments to our suppliers. Bills e.g. electric Statements for fixed assets – e.g. for a van, what has been paid and what is now owed. Loan Statements – Showing what we have borrowed, paid off and now owe. Bank statements – Showing all the money we have paid in and taken out of the bank as well as interest we may have been charged.

Activity 2 In pairs decide why a business might keep each of the different types of financial statements. Why are they important to a business?

Measuring Success with Financial Statements At the end of the year, a business will draw up two specific financial Statements to keep track of how successful the business’ operations are.  An Income Statement (Profit & Loss account) Showing gross and net profit Can be used to see if the business is improving or not.  A Statement of financial Position (Balance Sheet) Shows everything the business owns (the assets) and everything it owes (the liabilities.)

Activity 3

Activity 4

Financial Statements Required By Law The law does not say businesses have to keep the general financial statements we looked at earlier. If you don’t draw up an income statement you may end up paying too much tax. If a business is a private or public limited company, the law says it MUST draw up the income statement and statement of financial position and send them to the Registrar of Companies. Failure to do so, could result in????