Finance illustration Finance theory

Company accounts and interpretation

Business accounts are produced to meet the needs of their users. Typical users and the use they make of accounts is shown below:

Shareholders

To check on quality of direction of company, as well as profitability, solvency, value of company and other signs of health.

Employees

To check on job security and scope for wage and benefit increases.

Suppliers

To check that a company is generating the cash to be able to pay up.

Inland Revenue

For calculations of Corporation tax.

There are three main financial statements that are produced by company accountants. These are:

1. The Balance Sheet setting out the financial position of the company at a particular moment in time e.g. the year end.

2. The Profit and Loss Account showing how the profit or loss of the business has been generated.

3. A cash flow statement setting out the cash inflows and outflows to the business during a particular period of time.


Supporting Documents

These downloads will help to put finance theory into context using real world examples from real businesses.

Protecting the marketing mix through intellectual property rights
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Find out how Intellectual Property Office used finance theory to succeed in the public sector industry by downloading our premium case study.

Innovation in infant nutrition
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Discover how Cow & Gate used finance theory to thrive in the food & drink industry by downloading our premium case study.

Leading a revolution in banking
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Discover how Intelligent finance applied finance theory to prosper in the financial services industry by downloading our premium case study.

Re-focussing a company's culture and marketing mix
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Discover how Argos used finance theory to thrive in the retail industry by downloading our premium case study.

Creating a winning marketing mix
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Learn how JD Sports applied finance theory to thrive in the retail industry by downloading our premium case study.