Financial Statements
作者：Vinh Nguyễn
1. Definition
1.1. Financial statements are written records that convey the business activities and the financial performance of a company.
2. Purpose
2.1. Financial statements are used as a basis for business decisions such as allocation of financial resources, development of new products and expansion of operations.
3. Classification of financial statements
3.1. Balance sheet
3.1.1. Shows a company’s financial situation on a particular date.
3.1.2. Lists the company’s assets, liability and shareholders funds.
3.2. Income statement
3.2.1. Shows earning and expenditures of a company in a fiscal period.
3.2.2. Gives figures for total sales and turnovers and costs or overhead.
3.3. Cash flow statement
3.3.1. Shows the flow of cash in and out of the business between balance sheet date.