Financial Statements Overview

Front

The importance of financial statements

Back

Financial statements provide information to stakeholders interested in the business.

Front

Assets and liabilities

Back

Assets are things the business owns; liabilities are things the business owes.

Front

Examples of unincorporated businesses.

Back

Sole traders and partnerships.

Front

Examples of incorporated businesses.

Back

Private limited companies and public limited companies.

Front

Definition of a public limited company.

Back

A company whose shares are traded publicly on a stock exchange.

Front

Incorporated entities are separate legal entities.

Back

They can enter into contracts, acquire assets, and incur liabilities in their own rights.

Front

Annual accounts for a limited company.

Back

Must be prepared and filed each year at Companies House, with a copy sent to all shareholders.

Front

Liability of a limited company.

Back

Shareholders can only lose their investment.

Front

Legislation for a sole trader.

Back

None.

Front

Management in a sole trader.

Back

Owner takes all decisions.