A business needs to produce the following documents:
Profit and loss account
– shows how well the business traded for a particular period of time
– a statement of the assets and liabilities of a business at a particular time,
how those assets and liabilities have been financed.
Cash flow statement
– a statement showing how cash has come into the business and what it has
business has traded for a specific period been spent on.
Asset – what the business owns
Fixed assets – assets that can be used repeatedly
Current asset – an asset that can be quickly turned into cash
Liabilities – what the business owes to others
Current – liabilities that have to be repaid within 1 year
Long term – liabilities that have to be repaid in more than one year