Organization Structure Diagram

2705 Words Feb 5th, 2018 11 Pages
Organization structure diagram

1.2 The reports produced byt the company and the reasons they are produced
The two basic fundamental accounting reports that the business needs to produce are:
The Balance Sheet
The income or Profit and Loss Statement.
Derivatives of these are the Cash Flow Statement and the Tax Return.
The Balance Sheet shows the company's financial standing at a given point in time, e.g. at the end of a year or at the end of a month. It is called 'Balance' since financial assets on one side and liabilities plus owner's equity on the other side must balance (and certainly not show a loss) for the company to be successful
The Income of Loss statement shows the organization's performance over a given point in time and is ongoing. Calculations must be honest and accurate according to government regulations such as the SOX for, otherwise, penalties are severe including imprisonment, fine, and closure of business. The income statements show overall profit or loss of business and business progression. The Cash Flow Statement is the document that is required for courtroom use for the fictional or quasi-fictional expenses that are not included in eh Income Statement. One such instance may be "depreciation" where a lump sum is spread over a period of time. 'Amortization" is another instance where the lump-sum is distributed for an intangible product over a certain period of time
The Tax return comes from the income statement, which will be according to…
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