Introduction to Accounting: Explaining Financial Statements, Formulating Income Statement, Evaluating Financial Aspects of Grenco Plc

Introduction to Accounting

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explaining Financial statements..................................................................................................3
Formulating the income statement...............................................................................................4
Evaluating financial aspects of Grenco Plc.................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES...............................................................................................................................9s

INTRODUCTION
Accounting is the process of recording financial transactions pertaining to a business for
management of the accounting process that includes summarization, analysation and reporting.
In this project the Grenco plc is the grocery retail is the chosen organization in the given case
study for which the accounting financial statements have been shown. This project will explain
the three different financial statements and also provide the information that is being linked to
one another. This project will also prepare financial statements and compare the performance of
the organization in different years. In this project the financial aspects of the organization will be
differentiated.
MAIN BODY
Explaining Financial statements
Balance Sheet :
Balance sheet is refers to the financial statement which reports the company's assets,
liabilities and shareholders equity in the given time (Huo and et.al., 2018). This is also
considered to be the factor which influences the rates of return for the investors that evaluates the
company's capital structure. Balance sheet is considered to be the one which provides the
snapshot of what the company looks like in terms of its assets and liabilities. This information is
very important for the shareholders to consider before making any kinds of investment in the
organization. Balance sheet is also considered to be very useful for the important financial
statements for the conduction of the fundamental analysis for the calculation of the financial
ratios.
This is the financial statement which is the key towards the reporting and evaluation of
the business (Balance Sheet, 2020). This is also considered to be the operations which allows the
business in the management of the equation which is related to the sum of liabilities which brings
shareholders equity. It can also be considered to be the management of the organizational
operations. This is helpful for the business in providing the fundamental analysis of the balance
sheets for the calculation of the financial ratios.
Income Statement :
Income statement is the financial statement which shows that company income and
expenditure which shows that the company is making profit or loss in a give period (Ihrig and
et.al., 2018). This is considered as the statement which helps in accounting standards and