As a student to finance, you will be required to prepare an accurate financial statement which will be useful for your career ahead. But the process of preparing a financial statement analysis assignment can be quite tricky. Hence, they must follow the steps to prepare this complex document.
The financial statement is the record of an organisation’s financial activity. The main elements of a financial statement are the balance sheet, the income statement, and the cash flow statement. Now let’s elaborate on the steps to prepare the statement which the experts on financial statement assignment help diligently follow.
Creating a balance sheet
The balance sheet is prepared following a basic accounting equation, which is total asset= liabilities +shareholders’ equity. Rearranging the equation, you can find that equity is equal to assets minus liabilities. The balance sheet simply represents this relationship. As per the experts on financial statement analysis assignment help, all liabilities and assets are added up on the balance sheet. Then liabilities are subtracted from assets to derive a figure for shareholder’s equity.