A full set of financial statements may be produced once or twice a ye ar,
although the key informat ion would generally need to be generated on a
Depending on the type of business and legal structure, financial statements
may need to be lodged with stock e xchanges, government regulators, and
issued to shareholders.
Financia l statements are also analysed in situations where other businesses
2.1.2. Basic Accounts
Basic accounts require a record of each transaction that has occurred, along
with two financial statements.
The financia l statements are a balance sheet, and a profit-and-loss statement.
The Ba lance Sheet contains a list of the assets of the business, which are any
ite ms of value owned by the business.
Liabilities are any a mounts that are owed, wh ich ma inly co mprises debts
such as bank loans . The difference between the two figures is the net assets
of the business.
The balance sheet applies at a particular point in t ime.
For e xa mp le
Ba lance Sheet as at 30th June 2002
Raw Materia ls
Cash at bank