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    As SACs corporate business financial analyst, you will be required to provide the SAC Board of Directors and executive management team with essential financial information on the management of the SAC enterprise. What are the basic financial statements you will submit to the Board and management? What information is contained in each of the statements? How will the information that you provide be used by the management team? How will it help them manage the enterprise? What are the limitations of the information that you provide to the management team? How can the management team ensure that they obtain a complete picture of the enterprise?

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    The response addresses the queries posted in 2329 words with references.

    //As per the directions, we will discuss about the basic financial statements that furnish the crucial financial information to the SAC Board of Directors and Executive Management team. In this part, we will also talk about various information contained in each statements and how it will help the team in analyzing the complete picture of the enterprise. So, firstly, we will write about the general introduction on the financial statements under the heading of Introduction, for example: //


    A financial statement is a collection of financial information, which is rationally and consistently organized according to the principles of accounting. Its intention is to express an understanding of some financial aspects of a business enterprise. It may show a position at a moment of time, as in case of balance sheet or may reveal a series of activities over a given period of time, as in the case of an income statement. Financial statements are the major means through which enterprises present their financial situation to their stakeholders i.e. shareholders, stockholders, creditors, and the general public. It is crucial part of the annual reports, which are circularized extensively (Van Horne, Wachowicz, & Bhaduri, 2008).

    //Above, we discussed about the financial statements that enable board and management team to measure financial position of a business concern. Now, as per the directions, we will talk about the basic financial statements and information comprised or furnished by each of the statement.//

    Financial Statements

    The basic Financial Statements not only assist as a commencement to financial statements, but also concepts related to the financial statements. These statements basically look at or cover the company's facts concerned to the monetary issues. With the help of the basic statements, one can easily asses the enterprise information related to the financial status, inflows & outflows of funds, fair & true view of the business. In the actual fact, basic financial statements render complete view of the financial performance and its status of its monetary resource (Basic Financial Statements, 2008). The SAC board of directors and management team of the company can be provided with various basic financial statements by the financial analyst in order to furnish the vital financial information. The following are the basic financial statements include: Balance Sheet, Income statement, Statement of cash flows and Statement of changes in equity.

    The brief description of the information contained in the following financial statement is as under:

    Ø Balance Sheet: Balance sheet is one of the most substantial financial statements of the business enterprises. This statement is also called by another name i.e. statement of financial conditions because it reflects the company's financial status. Balance sheet mainly includes the information pertain to the various items of assets and equities at their respective book values of an enterprise as on a particular date. Assets include fixed assets, investments, current assets, loans & advances, deferred expenditures. On the other side, liabilities include share capital, reserves & surpluses, secured & unsecured loans, current liabilities and provisions (Preston, 2007). This statement depicts the balance left open in the Ledger account, subsequently income and expenditure accounts have been closed off by carrying forward them to the Profit and Loss account. Balance sheet also contains the data related to its liquidity and solvency position.

    Ø Income Statement: An income statement reveals the flow financial gain and expenditure status throughout a time period. The statement of revenues and expenses or statements of profit and loss are the other names of this statement. Income statement also covers the information concern to the changes occurred in the balance sheet from the end of one period of time to the ...

    Solution Summary

    The response addresses the queries posted in 2329 words with references.