MBA NOTES:FINANCIAL STATEMENTS / FINANCIAL REPORTS

FINANCIAL STATEMENTS / FINANCIAL REPORTS

Financial statements (financial reports) are formal records of a business financial activities. these statements provide an overview of a business profitability and financial condition in both short and long term. There are five basic financial statements:

Balance Sheet

Balance sheet also referred to as statement of financial position or condition, reports on a company assets, liabilities and net equity as of a given point in time.

Income Statement

Income statement also referred to as profit or loss statement. reports on a company results of operations over a period of time.

Cash Flow Statement

Statement of cash flows reports on a company cash flow activities, particularly its operating, investing and financing activities.

Statement of Changes in Equity

Statement of retained earnings explains the changes in a company retained earnings over the reporting period.

Notes to the Financial Statements

Notes to the financial statements explains the necessary details and calculations about the key figures nominated at the face of balance sheet and income statement. commonly this section is called footnotes but its a comprehensive part of financial statements that describe the accounting procedures and policies.

SYNOPSIS OF FINANCIAL ANALYSIS
FINANCIAL STATEMENTS / FINANCIAL REPORTS
USERS OF FINANCIAL STATEMENTS
TYPES OF FINANCIAL ANALYSIS
TOOLS OF FINANCIAL ANALYSIS (METHODS)
RATIO ANALYSIS
CLASSIFICATION OF RATIOS
LIQUIDITY RATIOS
PROFITABILITY RATIOS
LEVERAGE RATIO
EFFICIENCY RATIO

MBA NOTES

MBA NOTES