Financial Statements of Business Unit basically comprises Profit & Loss Statement (Income Statement) and Balance Sheet. Income Statement will convey where as Balance Sheet will convey the financial position of the unit. Financial Statements will be used by various stake holders for various purposes. Investors will analyse the financial statements before taking decision to invest in Business Unit. Investors will analyse the financial Statements before lending money to the Business Unit. Tax and Statutory Authorities will review financial statements for levying various Taxes. Hence the financial statements will be used by various stake holders. Therefore every key personnel and every one working in an Organization's balance Sheet before stake holders raises unanswerable Questions. Developing the skill to read Balance Sheet will help the Business units to understand their standing and analyse strength and weakness and plan for future.
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