Politeknik Tuanku Sultanah Bahiyah,

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Emel : maklumbalas@ptsb.edu.my

DEPARTMENT OF COMMERCE
DIPLOMA IN ACCOUNTANCY

PB604 BUSINESS
FINANCE
CHAPTER 3 :
FINANCIAL ANALYSIS
NAME
AUNI SYIFA BINTI AZIZI
NUR SYAHIRAH BINTI YUSRI
SITI NUR FAIZAH BINTI ALIAS
HUSNA BINTI HASBUDDIN
NOR HAFIZAH BINTI YAACOB

MATRIC NO
16DAT12F1035
16DAT12F1031
16DAT12F1054
16DAT12F1040
16DAT12F1033

SESSION : DEC 2014

CLASS
: DAT6B
LECTURE : PUAN WAN NOR ASNIZA BT
ARSHAD
Question 1
Briefly describe the basic financial statements for a firm.
I.
II.

III.

Balance sheet
The balance sheet reports a companys financial position at a particular time.
Income statement
The income statement shows a company`s operations for a period of time. It
reports revenue, expenses and profit (or loss).
Statement of cash flows
The statement of cash flows shows the changes in cash position during a
period covered by the income statement. It complements the income
statement and balance sheet. The changes in cash position can be caused by

IV.

a variety of transactions.
Note after the financial statement
In the annual report, financial statements are usually followed by detailed
notes. These notes clarify or expand information contained in financial
statements. These notes show the accounting policies used in preparing the
financial statements. Notes also provide additional details about some of the
items in the statements, such as inventory and depreciation methods of
calculation.