Accounting Question
Financial Statement:
Financial statement consists of financial report and company’s financial condition. Income statement, Balance Sheet, Cash flow statement and shareholder equity statement is included in financial statements of company. The main reason to prepare this statement is to find out whether company is making profit or loss, whether the company has ability to generate cash and to find out what are the sources to generate cash.
Balance Sheet:
Balance sheet is a financial statement which helps to know financial position of company. The financial statement consists of company’s current assets, Non-current assets, Current liabilities, Non-current liabilities, Equity and the capital structure of company. It is a statement which provides a snapshot of company owe to whom and who owe to company, also investments made by shareholders.
Income Statement:
A financial statement which shows profitability of company over a period of time is known as Income Statement. The income statement shows companies expenses and incomes over a period of time. The profit or loss of companies is known through income statement. It is calculated as Revenue minus Expenses and losses.
Cost of goods manufactured:
The direct labour, Direct material and overhead that are incurred to manufacture a particular good such expenses are said to be cost og goods manufactured. In layman language cost of goods manufacture is cost required to manufacture a particular product.
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