Business accounts are produced to meet the needs of their users. Typical users and the use they make of accounts is shown below:
There are three main financial statements that are produced by company accountants.
1. The Balance Sheet setting out the [theory/theory--financial-information-decision-making--121.php">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.