CASH FLOW STSTEMENT

a cash flow statement or statement of cash flows is a financial statement that shows a company's flow of cash .The money coming into the business is called cash inflow and money going out from the business is called cash outflow. money (sources and uses of cash) during a time period (often monthly or quarterly). The statement shows how changes in balance sheet and income accounts affected cash and cash equivalents, and breaks the analysis down according to operating, investing, and financing activities. As an analytical tool the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements.
People and groups interested in cash flow statements include
accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses
potential lenders or creditors, who want a clear picture of a company's ability to repay
potential investors, who need to judge whether the company is financially sound
potential employees or contractors, who need to know whether the company will be able to afford compensation
Contents[hide]
1 Purpose
2 History and variations
3 Cash flow activities
3.1 Operating activities
3.2 Investing activities
3.3 Financing activities
4 Disclosure of noncash activities
5 Preparation methods
5.1 Direct method
5.2 Indirect method
5.2.1 Rules
6 See also
7 Notes and references

INCOME STATEMENT

An Income Statement, also called a Profit and Loss Statement (P&L), is a financial statement for companies that indicates how Revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into net income (the result after all revenues and expenses have been accounted for, also known as the "bottom line"). The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.
The important thing to remember about an income statement is that it represents a period of time. This contrasts the balance sheet, which represents a single moment in time.
Charitable organizations that are required to publish financial statements do not produce an income statement. Instead, they produce a similar statement that reflects funding sources compared against program expenses, administrative costs, and other operating commitments.
Contents[hide]
1 Usefulness and limitations of income statement
2 Items on income statement
2.1 Operating section
2.2 Non-operating section
2.3 Irregular items
2.4 Earnings per share
3 Top line
4 Bottom line
5 See also
6 References
7 External links

BUSINESS PLAN

A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
The business goals being attempted may be for-profit or non-profit. For-profit business plans typically focus on financial goals. Non-profit and government agency business plans tend to focus on service goals, although non-profits may also focus on maximizing profit. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. A business plan having changes in perception and branding as its primary goals is called a marketing plan.
Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers.[1] External stake-holders of non-profits include donors and the clients of the non-profit's services.[2] For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the IMF, the World Bank, various economic agencies of the UN, and development banks.
Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans.
Operational plans describe the goals of an internal organization, working group or department.[3] Project plans, sometimes known as project frameworks, describe the goals of a particular project. They may also address the project's place within the organization's larger strategic goals.[4][5]
Contents[hide]
1 Business Plan Content
2 Business
2.1 Support services
2.2 Resources for researching facts and figures
2.2.1 Internal corporate records
2.2.2 Free information
2.2.3 Fee-based services
2.3 Strategic Analysis
2.4 Forecasts: Modeling Techniques
3 Presentation Formats
4 Revisiting the Business Plan
4.1 Cost overruns and revenue shortfalls
5 Legal and Liability Issues
5.1 Disclosure requirements
5.2 Limitations on content and audience
6 Open Business Plans
7 How Business Plans are Used
7.1 Venture Capital
7.2 Public Offerings
7.3 Within Corporations
7.3.1 Fundraising
7.3.2 Total Quality Management
7.3.3 Management by Objective
7.3.4 Strategic Planning
7.4 Education
7.4.1 K-12
7.4.2 Higher Education
8 Satires of Business Plans
9 References

BALANCE SHEET

In financial accounting, a balance sheet or statement of financial position is a summary of a person's or organization's balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a snapshot of a company's financial condition.[1] Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time.
A company balance sheet has three parts: assets, liabilities and shareholders' equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth of the company; according to the accounting equation, net worth must equal assets minus liabilities.[2]
Another way to look at the same equation is that assets equals liabilities plus net worth. This is how a balance sheet is presented, with assets in one section and liabilities and net worth in the other section. The sum of these two sections must be equal; they must "balance".
Records of the values of each account or line in the balance sheet are usually maintained using a system of accounting known as the double-entry bookkeeping system.
A business operating entirely in cash can measure its profits by withdrawing the entire bank balance at the end of the period, plus any cash in hand. However, real businesses are not paid immediately; they build up inventories of goods and they acquire buildings and equipment. In other words: businesses have assets and so they can not, even if they want to, immediately turn these into cash at the end of each period. Real businesses owe money to suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of each period. In other words businesses also have liabilities.
Contents[hide]
1 Types of balance sheets
1.1 Personal balance sheet
1.2 US Small business balance sheet
2 Corporate balance sheet structure
2.1 Assets
2.2 Liabilities
2.3 Equity
3 Sample balance sheet structure
4 See also
5 References
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