How do you use finance statement templates?


Quick Answer

Individuals use financial statement templates to create reports that evaluate the financial strength, performance and liquidity of a company, according to Accounting-Simplified.com. There are four main types of financial statements, which include those that delineate a company's financial position, income, cash flow or changes in equity.

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How do you use finance statement templates?
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Full Answer

A template for a statement that analyzes a company's financial position includes categories to list assets, liabilities and equity, reports Accounting-Simplified.com. Such a statement of financial position is also known as the company's balance sheet. The balance sheet provides information about a company's credit, financial or liquidity risks. A template for an income statement is divided into two categories: income and expenses. The income section details what the company has earned over a specific period from such source revenues as sales and dividends, while the expense section lists expenses such as salaries, wages and rent.

A template for a cash flow statement shows how to represent the movement of cash and balances throughout a certain period, explains Accounting-Simplified.com. The cash flow is broken down by company activities such as operating, investing and financing. Templates for statements about changes in equity include various categories, including those that detail the share capital issued or repaid during a specific period, net profits, and loss and changes in accounting policy. Such statements are also called statements of retained earnings.

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