UNIT 7 - FINANCIAL STATEMENTS Flashcards
Income statemtent aka
profit andloss account
what does income statement show at end of year
profit and loss account
what does income statment record
revunue and los over a POT usually a year
which type of bs use an income statmetn
sole trader
Ltd
PLC
what data can Y statement show us
Gross profit - GPM
Operating Profit - OPM
Net Profit - NPM
Balance sheet aka
SOFP
What is a balance sheet
record of what company owes, owns and is owed at a specific pointin time
why is balance sheet a snapshot /specific pointintime
because next day something might change so would be out of date
who uses/makes balance sheet
PLC
LTD
why do sole traders barely use /make balance sheet
IN TERMS OF PROFIT DRAW IT DOWN AS WAGES THEREFORE NO ACTUAL EQUITY IN COMPANY + NOT LEGAL OBLIGATION
What does balance sheet show
Assets , liabilities , equity
Working capital
Net worth of company
how do you calculate working capital
CA-CL
