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Financial Statements:

  1. Income statement:

    An income statement shows the results of operating for a period of time. It is sometimes called operating statement or statement of operations. It shows how well an organization performed during the period covered. Read more.

  2. Cost of Goods Sold Statement:

    Cost of goods sold represents the sum of the costs of all goods which have been sold during the accounting period. It is ascertained by adding the value of unsold goods at the beginning of the year (opening inventory or stock) to the purchases made during the year and the deducting the values of unsold goods at the end of the year (closing inventory of stock) from the purchases. Theses are expired costs, and thus are actual expenses for the year. Read more.

  3. Cost of Goods Manufactured Statement:

    Cost of goods manufactured is the total cost of goods completed during the period. Manufacturing companies transform raw material into finished goods through the use of labor and factory facilities. For example, a company manufacturing furniture from wood or timber. Read more.

  4. Balance Sheet - Report Form:

    Balance sheet shows the financial position or condition of an organization at a particular point in time. In fact, it is sometimes referred to as a position statement or statement of condition. Read more.

  5. Difference between Income Statement and Trading and Profit and Loss Account:

    Both income statement and trading and profit and loss account are prepared to ascertain the net result of the business concerns. Some business concerns who have adopted British Accounting System, prepare trading and profit and loss account to determine the net result of the business, while some others who have adopted American Accounting System, prepare income statement for the same purpose. Read more.

  6. Adjustments and their Effect on Financial Statements:

    Majority of the business enterprises are preparing their financial statements in statement form. On this page effect of adjustment on income statement is discussed to meet the requirements of modern business. Read more.

  7. Evaluation of Financial Statements:

    Financial statements are evaluated for the use of external parties as well as internal management. External parties include government agencies, creditors, shareholders and general public etc. Read more





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