Tools for Digital
Business
summary Finance
and Accounting
2020 – 2021
, Finance & Accounting
What do we remember about Finance & Accounting? Here’s a short recap of the basics.
Financial statements help companies assess several aspects of the business, from
profitability (income statement), to how assets are sourced (balance sheet), and cash inflows
and outflows (cashflow statement). Financial statements are also mandatory to companies
for tax purposes. They are also used by managers to assess the performance of the
business.
The purpose of the balance sheet is to report how the resources to run the operations of a
business were acquired. The balance sheet help to assess the financial risk of a business and
the simplest way to describe it is by the accounting equation: Assets = Liability + Equity.
2
Business
summary Finance
and Accounting
2020 – 2021
, Finance & Accounting
What do we remember about Finance & Accounting? Here’s a short recap of the basics.
Financial statements help companies assess several aspects of the business, from
profitability (income statement), to how assets are sourced (balance sheet), and cash inflows
and outflows (cashflow statement). Financial statements are also mandatory to companies
for tax purposes. They are also used by managers to assess the performance of the
business.
The purpose of the balance sheet is to report how the resources to run the operations of a
business were acquired. The balance sheet help to assess the financial risk of a business and
the simplest way to describe it is by the accounting equation: Assets = Liability + Equity.
2
