Briefly explain the financial statements prepared by the-01549
This subjective question is related to the book/course
vu fin623 Taxation Management.
It can also be found in
vu fin623 Mid Term Solved Past Paper No. 4.
Profit and loss account:
It shows the performance of the business in a given period. It shows the profitability of business which shows the success or failure of the business.
Balance sheet:
Balance sheet shows the position of business at a given point. It shows the resources available by the business and the resources invested by the owner and other loans.
Cash flow statements: Cash flow statements show the generation of cash and its usage over a given period. IMPORTANCE OF FINANCIAL STATEMENTS FOR MANUFACTURING CONCERN: These financial statements are important for manufacturing concern organization as they provide information related to financial affairs of the organization. The profitability and liquidity, the resources available to the company and the generation of cash and its usage over a given period which provides reasonable information to the management to take decisions.
