Knowledge clip, financial statements and annual report
Finance is extremely important, because it is about the following questions:
What are you financial goals?
Is your venue going in the right direction?
Forecast and actual results
Financial statements
The main financial statement are:
The income statement (or profit and loss account)
An overview of the estimate revenues and costs in a certain period, which reveals the
profitability of a company.
Statement of cash flows
An overview of all the receipts and expenditures that will take place in a period to estimate
your Cash at bank (or Bank overdraft).
There are two methods, the direct and indirect method.
The direct methods is as follows:
The indirect method:
Easy to produce after producing balance sheets and income statement. And gives insight into
where the cash is coming from:
o Operating activities
o Investing activities
o Financing activities
Finance is extremely important, because it is about the following questions:
What are you financial goals?
Is your venue going in the right direction?
Forecast and actual results
Financial statements
The main financial statement are:
The income statement (or profit and loss account)
An overview of the estimate revenues and costs in a certain period, which reveals the
profitability of a company.
Statement of cash flows
An overview of all the receipts and expenditures that will take place in a period to estimate
your Cash at bank (or Bank overdraft).
There are two methods, the direct and indirect method.
The direct methods is as follows:
The indirect method:
Easy to produce after producing balance sheets and income statement. And gives insight into
where the cash is coming from:
o Operating activities
o Investing activities
o Financing activities
