Business Accounting Assignment Essay
Statement of Financial Position
(b) The purpose of a financial statement is to provide useful information in making major decisions in investment and lending decisions of which the major objectives includes finding out the financial position of the company, to asset the stewardship function and predictability of the company's performance and also to identify the strength and weakness of the company. Financial terms are usually referred to into two basic statements, the Income statement and the statement of Financial Position.
The Income statement also known as profit and loss statement is a financial statement that shows a …show more content…
(Cited http://smallbusiness.chron.com/can-managers-use-accounting-information-3950.html, 21 April 2012)
Banks, uses accounting information to speculate upon opportunity of attractive business in placements and resource attraction.
(Cited http://steconomice.uoradea.ro/anale/volume/2007/v2-finances-accounting-and-banks/83.pdf , 21 April 2012) by looking up the financial statement banks can evaluate whether a company has