main components of financial statements?
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Financial Statements are comprised of:\n\na) Balance Sheet\nb) Income Statement\nc) Statement of Cash Flows\nd) Notes to the Financial Statements
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This site has a wonderful explanation on the basics of accounting. Please be patient enough to read through. http://www.futureaccountant.com/accounting-process/study-notes/\n\n\nhttp://www.futureaccountant.com/\nhttp://www.schoolingkids.com
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The financial statements usually contain three "statements".  They contain the Income Statement, Balance Sheet and Cash Flow Statement.  The income statement contains the revenues and expenses to determine the period's net profit.  The balance sheet is a period ending's assets, liabilities and equity.  The cash flow statement is a reconciliation of the income statement to the cash balance by backing out changes in the balance sheet and differences in cash/non-cash items. \n\nThe cash flow statement is made up of three parts: Cash flows from operating activities (CFO), cash flows from/for investing activities (CFI) and cash flows from/for financing activities (CFF).  \n\nThe CFO usually is stated using the "indirect method" (except Australia, where I've seen them use the direct method predominantly).  Indirect method starts with pre-tax profits, backs out non-cash items (e.g. depreciation), changes in working capital and takes out taxes to get to CFO.  This section is basically the cash from the "core business" of the company.  \n\nCFI is usually dominated by capital expenditures (e.g. spending on new equipment), acquisitions and cash flows in and out of equities, stocks, derivatives and other investments not deemed to be core to the business (i.e. either as capital management or outside the scope of the company's business).  \n\nCFF is usually dominated by debt proceeds/payments, dividends and new funds from equity raising (e.g. stock options, secondary placements, IPO). \n\nThis nets down to the change in cash.  You can see where cash is coming and going (e.g. is the core business losing lots of money, but they are staying afloat by raising debt?  is the company doing really well, but the company is blowing the cash is stupid investments year after year?). \n\nThe last thing is to look at the footnotes, which give you even more details on where cash came from and went. \n\nI can go on and on... but that, my friend, is how you figure out the cash flow from looking at the financial statements.
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Accounting is money on paper.\nFinance is real money.
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Learn the fundamentals of accounting here\n\nhttp://www.futureaccountant.com/accounting-process/
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This site has a good explanation on the basic accounting process\n\n\nhttp://www.futureaccountant.com/accounting-process/
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Financial statements are the numerical record of the business decisions made in the past by management.  Financial statements cannot give you a sense of where a business will be in the future.  Only the Management Discussion and Analysis can give you an idea of what business decisions are being made that affect a company's future.
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net income\ncash flow\nquick ratio\nshareholders or owners equity\nrevenues\naudited statement vs. compilation\ndisclosures\nnotes to financial statements\nany warnings in auditors letter re: going concern or other potential problems
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the balance sheet. it contains all the transactions in one, up-to-date place.
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A financial statement presents, at a given point in time, the financial status of an individual or corporation, while a general ledger is a continuous record of the transactions of an individual or corporation.  That is a very simplified explanation.
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If you are preparing a balance sheet cash should be shown as a current asset. And capital employed is calculated by adding profits to initial/opening capital and deducting any drawings. \n\nOpening capital should consist of all cash and assets invested in the business initially.
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Accounting tends to be one of those subjects that you either get it or your don't.  The best advice is to keep practicing the t-table exercises until you find that "A-HA!" threshold.\n\nHere are some basics.\n\nIncome Statement\nNet Sales\n - Cost of goods sold\n   (Labor, Materials, Overhead, Delivery, etc.)\n= Gross Margin\n - Selling, General & Administrative expenses\n= Operating Profit\n - Interest\n= Profit before taxes\n\n\n\nBalance Sheet\nAssets\n Cash\n Investments\n A/R\n Inventories\n PP&E\n\nLiabilities\n A/P\n Long-term debt\n Other liabilities\n Reserves\n\nShareholder's equity\n Common stock\n Retained earnings
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A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.\n\nThe balance sheet must follow the following formula:\nAssets = Liabilities + Shareholders' Equity \n\nEach of the three segments of the balance sheet will have many accounts within it that document the value of each. Accounts such as cash, inventory and property are on the asset side of the balance sheet, while on the liability side there are accounts such as accounts payable or long-term debt. The exact accounts on a balance sheet will differ by company and by industry, as there is no one set template that accurately accommodates for the differences between different types of businesses.\n\nInvestopedia Says: It's called a balance sheet because the two sides balance out. This makes sense: a company has to pay for all the things it has (assets) by either borrowing money (liabilities) or getting it from shareholders (shareholders' equity). \n\nThe balance sheet is one of the most important pieces of financial information issued by a company. It is a snapshot that shows you what a company owns and owes at that point in time. The income statement, on the other hand, shows how much revenue and profit a company has generated over a period of time. Neither statement is better than the other; rather, the financial statements are built to be used together to present a complete picture of a company's finances.
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short answer, get MYOB and pre-select the business type, it will give you a complete chart of accounts applicable to that type of business.\n\nThere are some basic line items that every business will use, but in essence, you can, subject ot accounting standards and generally accepted accounting principles, create what you want.
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The basic accounting equation is:\n\nassets = liabilities + owner's equtiy\n\nSo, mathematically speaking, they have to be equal.
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To know about one of the options accounting..\n\n\nhttp://www.futureaccountant.com/
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Financial statements are Profit and Loss, Balance Sheet and Cash Flow. Look their composition in your textbook or wikipedia. Youanalyse themby computing a bunch of ratios, reflecting profitability (profit/sales, /assets), liquidity (Current Assets/Current Liabilities), debt burden (debt/equity, interest leverage) and whatever else.