FINANCIAL INFORMATION

Financial Information



Dipping Your Toes in the Waters of Financial Information - Decision Making

Balance Sheet

The balance sheet of the Compnet International is a document which represents balance at the end of each year and is written for different purposes which are listed below:

For legal purpose

Tax purpose

Management and Shareholders purpose

The purpose of this analysis is to identify and obtain information about liquidity and accurate investment decisions made ??in the Compnet International.

The balance sheet: what one has

On the asset side of Compnet International balance sheet, we find the elements allowing us to identify the allocation of money for the development and continuity of operations. This allocation may appear on the balance sheet accounting in physical form, the form of engagement or in monetary form.

The physical elements of the balance sheet: Land, buildings, machinery, transport vehicles, tools, industrial equipment, office equipment, computers are recorded in the balance sheet at their purchase value and there is a depreciation to assess impairment over time. Stock of goods which are for sales but its assessment for the balance sheet is at the close of the accounting period (Paul, 2009).

Involvement in the balance sheet: Trade receivables: These are future cash receipts must be quantified in the balance sheet at the closing date of the exercise.

The appearance of cash balance sheet: The cash contained in your bank accounts or your cash funds are included in your balance sheet.

The balance sheet: what we must

Liabilities on the balance sheet, there are elements allowing us to identify the source of the money that finances assets. It is divided into two categories: internal and external.

The passive internal balance sheet:

This corresponds to the initial partners in the creation of the company and the results accumulated reserves (money earned by the non-distributed). This is the source of funding for the less risky the company. It appears in the upper right of the balance sheet of your company.

The external liabilities of the balance sheet:

Compnet International records their borrowed funds which are due at the end of fiscal year. Indeed, an amount which is due is not paid is that money used to finance the asset (taking into account the liabilities of the regulations). Loans from credit institutions, tax liabilities and social exploitation of external funds are contained in the balance sheet accounting.

Income Statement

The Profit and Loss Account is an accounting document whose utility is to determine the economic outcome of the exercise, which is obtained by difference between two bodies formed respectively by the Revenues and Benefits on the one hand and the costs and losses on the other. Income or benefits will be operations or results of operations that cause an increase the equity of the company. By contrast, expenses or losses will be operations or results of operations resulting in a decrease in the equity of the company.

In addition to this computational scheme, there is a second way, which lead to the same conclusion must be. In this way, a test to make sure all computational steps has been done correctly. Each of accounts of accounting provides that exists for the profit and ...