3.5 financial Statements

Question 1

What is a financial statement

Answer 1

Provides information to stakeholders (banks, shareholders)
Usually over a 1 year period

Question 2

2 key types of financial statements

Answer 2

1- statement of comprehensive income (profit and loss account )
2- statement of financial position (balance sheet)

Question 3

PLCs

Answer 3

Need to publish accounts
Companies include as little information as possible as competitors can see this information

Question 4

Published accounts allow analysts to:

Answer 4

Find out the amount of cash a business has
How cash meets short term liabilities