B4 Financial statements GapFill

At the end of the financial year, a range of documents are produced that show the financial position of a business. These documents are of interest to the owners and also to the  clientsstaffcustomersbank that provides financial backing. The profit and loss account shows a range of information. For example, turnover minus cost of sales gives the  allowancesnet profitexpensesgross profit figure. Once expenses are also subtracted,  legalallowancesnumbersnet profit is shown. 

The balance sheet shows a different set of information. It sets out what the business both owns and  outlinesowesshowscollects. Fixed assets are owned, and take time to convert into  creditcashsharesoverdraft. On the other hand, it's quicker to liquidate  savingsoverdraftscurrent assetsshares.

Organisations that owe money to the business are referred to as  clientsdebtorsoverdraftsreceivables, whereas when the business owes money to suppliers, these are called  co-operativecustomerscurrentcreditors. 

Stakeholders are individuals or groups who have an  interestclientjobcustomer in the business. They may be internal or  unhappyenterprisingexternalinterested. The government is a stakeholder because they expect to receive  taxinformationfinancedetails from the business. Lenders are also stakeholders; they expect to receive  detailsstatementrepaymentinvoice of loans. Managers and employees rely on the business being successful in order to remain  employedinterestedupdatedindependent.