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Financial analysis is one of the vital processes in any company during end of a financial year this is because as a company will have to make a statement of financial analysis to show both the performance and the position of the company. This will in other hand also give a clear view to investors who may be interested to invest in a company. Since, statement is a crucial and complex calculation the students need to have a clear understanding of the subject and if there is any problem to complete the homework given to the students by institution then myhomeworkhelp.com is always available to assist in the Attributes of Financial Statements Homework Help.
Attributes of financial statement
They point out to profit and loss statements, Balance Sheets and Cash Flow statements as the basic attribute of statements
- Profit and loss (P & L)
Another name is an income statement that gives you the whole idea of wealth- generation capacity of an organization. It is very easy to understand, income should always be greater than debts.
- Balance Sheet
If hypothetically you divide a company into three major parts like liabilities/ debts, assets and equity than a balance sheet will show that assets are equal to the total sum of liabilities and equity. Assets are both the non- tangible and tangibles items that can be converted to cash.
- Cash flow
This shows in flow and out flow of cash from any firm. This is really important to understand as it may be profitable and create more values. It will give a clear outlook of the amount of total investment required.
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