How can we check the Financial Status for Businesses?
It is very important for the businessman to check the financial status of the business time to time in order to get to know the exact position of the business.
Further various decisions can only be taken when the financial position of the business is known.
Financial statements helps the businessman to check the financial status of the business, it consists of trading account, profit and loss account, balance sheet, cash flow statement
Balance sheet is a statement that shows the position of the company assets and liability over a specific point. It helps to get to know the information of owners’ equity, current as well as non-current assets and liability
Trading account helps the businessman to get to know the gross profit/loss earn by the business over a specific period.
It is calculated by subtracting direct expenses from the sales of the company.
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