Professional Documents
Culture Documents
revenues to show the actual profit or loss of a company. This figure is known as
net income or bottom line.
The cash flow statement records the amounts of cash and cash equivalents
entering and leaving a company. This statement describes how much cash was
used in corporate operating, investments and financial activities over a period of
time.
The statement of changes of shareholder equity reconciles the difference
between the equity at the two different points in time.
Auditing is examination and evaluation of companys financial statements. It
can be done internally (by employees of the organization) or externally (by an
outside, independent organization).