Explore Types of Financial Statements and Budgets in Travel and Tourism Industry

THE LEVEL AND TOURISM
BUSINESS TOOLKIT
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Contents
Contents...........................................................................................................................................2
P7 Explore the different types of financial statements and reporting mechanisms for
organisations within the travel and tourism industry...................................................................3
P8 explanation of the importance and value of budgets for controlling business performance
and identifying variances.............................................................................................................4
M4 Interpretation financial statements and reports for organisations within the travel and
tourism industry...........................................................................................................................5
D4 Evaluate business performance based on financial statements reports for organisations
within the travel and tourism industry.........................................................................................5
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TASK 4
P7 Explore the different types of financial statements and reporting mechanisms for
organisations within the travel and tourism industry
British airways is one of the most popular and second major airline of United Kingdom. This
travel and tourism industry provides air line provides services to their customers. They also used
to provide maintain financial statements as it is essential for every business sectors and they are
use as proof document during audit process and representing financial reports in front of
shareholders to interest them the financial performance an position of British Airways within the
hospitality sector. Following types of reports or financial statements are prepared
Financial statements: These statements represent a systematic form of business activities of an
organization. Financial statements also known as financial reports. They shoes organization’s
efficiency and effective’s. British Airways use 4 types of financial statement (Torres-Delgado
and Palomeque, F 2014).
Income statement: This statement also known as profit and loss statement. It shows overall profit
and loss incurred during a particular finical period of time. Manager of British Airway use this
statement to determine net profit, operating profit of business activities.
Balance sheet: These statement define the asset and liabilities of British Airways with a given
time period. It is the most useful and essential financial report used by business organization. It
will also use in division making process.
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