Business & Management - Managing Financial Resources.

The first 200 words of this essay...

HND Business & Management Year 1

Unit 2: Managing Financial Resources

Assignment 3

Tutor: Juliette Marsh

Author: Jamie Sythes

Version: Final

Date: 15.12.03

The work submitted has been produced by myself.

Any assistance, references and research sources are clearly identified and listed in the bibliography.

Any false declarations will automatically result in the work being discounted and possible exclusion from the award.

Signature............................................... Date.....................

Task 1.

Financial statements are produced by businesses for a number of reasons, these include;

* To comply with the companies Act 1985

* To help management to evaluate and manage

* To provide information for interested parties (i.e. potential investors)

The main financial statements are made up of the following; A Profit and Loss account (also known as a P&L), a Balance sheet and a Cash flow statement. These three statements are normally accompanied with a section called Notes to the accounts.

It is important to remember that the financial statements are normally out of date by the time investors receive them and they are also not audited in full.

Profit and Loss:

The Profit