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Financial Documents A business needs to produce the following documents: Profit and loss account – shows how well the business traded for a particular period of time Balance sheet – a statement of the assets and liabilities of a business at a particular time, and 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 Two types: 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 Two types:- Current – liabilities that have to be repaid within 1 year Long term – liabilities that have to be repaid in more than one year |