Category Archives: Financial Documents

Income Statement Format And Elements

  Income Statement Format And Elements   Income statements provide an overview of how a company has performed over a given period of time. It indicates how revenue is transformed into net income and provides important insights into how effectively the management is controlling expenses. We will go over a basic income statement format, and…
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What Is A Balance Sheet?

  What Is A Balance Sheet?   The following section describes the important elements of the balance sheet.     A Balance Sheet indicates the financial strength of the company at any given point of time. It is a snapshot of what a company owns and owes, or gives the details of the assets and…
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Cash Flow Statement Example

As mentioned in the article on income statements the income statement indicates the profitability of a company's operations while the balance sheet reveals the financial health of a company at a given point of time. However, both these statements tend to ignore the cash generating capacity of a business, and profitability does not always guarantee…
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Financial Statement Analysis

In this short introduction, financial statement analysis will be defined and explained. It is one of the steps used in our review of a company’s potential when considering investment.   Financial Statement Analysis   Financial statement analysis is also referred to as ‘Quantitative Analysis’. It is one of the most important steps while analyzing a…
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