
Students' Guide to Business Computing
The first two components make up the
balance sheet
of the business,
and give a breakdown of the valuation of the company at a specific
date,
namely the end of the period for which the accounts are
produced. The second two components make up the profit and loss
account
for the period.
Statutory accounts are required annually for companies, but there
are good reasons for producing them more often, for internal
information. A lot can happen in twelve months, and it is important
that the company gets an earlier warning of any possible problems. If
costs jump or sales suddenly fall off, no sensible manager woul ...