Discussing the three Financial Statements.

... Discussing the three Financial Statements Introduction The financial statements outline very simply information which will assist a business manager, assessing how the operation is progressing and whether it is in a profit or a loss situation. An analysis of the basic financial aspects of the business will help to review not only the past progress but also provide a yardstick for future planning and changes to the operations that may be necessary. It is also important to understand these financial statements and to be aware of their problems and limitations in order to evaluate the financial position of the business. Balance Sheet A balance sheet is simply a list of all the balance of the assets and the liabilities and the investments of the business. In a traditional way the assets are shown on the left-hand side of the page and liabilities on the right-hand side of the page. There are always two aspects

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