Question

Example and how to

1. Types and purpose of analysis of financial statements and what each indicates

Answer 1

Commonly there are three types of financial statements which shows the picture of company,

1. Income Statement / Revenue Statement
2. Balance Sheet
3. Cash Flow Statement

Income Statement: This will shows the income and expenses of any company and net difference will indicates are net revenue or net loss.

Balance Sheet: This will shows the companies Assets, Liabililites and Shareholder's Equity and there value .

Cash Flow Statement: In Revenue statement and Balance sheet we are unable to track the actual cash flow. So this problem will solve in Cash Flow statement and it will shows the actual cash flow of the any organization.