Managing Financial Resources: Types of Financial Statements, Ratios, and Stakeholder Information

MANAGING FINANCIAL
RESOURCES
Table of Contents

INTRODUCTION.................................................................................................................................3
Assessment questions............................................................................................................................3
1) Various types of financial statement and ratios..........................................................................3
2) Ratio calculation........................................................................................................................5
3) Financial information require for different stakeholder.............................................................7
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
Managing financial resources is about to manage all the financial efficiency
associated with the business entity. This report will discuss the financial performance
associated with the business entity. Henceforth, report will emphasis over various types of
financial statement and ratios that can allow the business entity to evaluate the overall
performance of business entity. Different ratios will calculate based on the financial position
of the organisation. Furthermore, this project will discuss about different financial
information require to stakeholder associated with the business entity.
Assessment questions
1) Various types of financial statement and ratios
Financial management is all about managing the financial stability associated with the
business entity. Financial position of the organisation is further identified on the basis of the
situation reflect under the income statements, balance sheet and other such statements
formulated by the professionals. Following are the different financial statements and rations
that talk about the overall performance of business entity.
Income statement
Income statement is the financial statement that indicate about the income and
expenditures associated with the business entity. Income statement is the financial or
accounting record that reflects about the income of the company for the respective financial
year and the expenditure for the said tenure for the respective financial year. Income
statement record all the income for the respective business entity related to the financial year
and all expenditures associated with the financial year. The basic aim of the income statement
is to identify profitability of business entity for the respective financial year against all
transactions entertained by the organisation. Company assess its performance of the
respective financial year on the basis of the profit margin reflected in the company’s books of
accounts (Vuţă and et.al., 2019 ).
On the basis of comparative assessment and analysis over the profit margins company
identify its performance related to respective financial year. Income statement is among the
key factors that allow the business entity to assess the position of the business organisation
under the respective financial area. Company utilise this financial statement to analysis the