/MediaBox [0.0 0.0 612.0 792.0] Income statements also report earnings per share (or EPS). endstream endobj startxref /Parent 2 0 R Noncurrent assets are things a company does not expect to convert to cash within one year or that would take longer than one year to sell. 20 0 obj /Creator (Workiva) Shankaracharya Current assets are things a company expects to convert to cash within one year. << The state of Wisconsin follows the format set out in the Individual Financial Statement Template. Manage your account, applications, and payments. /Dest [34 0 R /XYZ null 752 null] Cash flow statements report a companys inflows and outflows of cash. To calculate EPS, you take the total net income and divide it by the number of outstanding shares of the company. << A cash flow statement shows changes over time rather than absolute dollar amounts at a point in time. The Insurance statement templates would be the format to follow. The financial statement in which accountants summarize and report asset value is the balance sheet. From an individual's perspective, the type of financial statement that suits their situation is a Personal Financial Statement. Annual Company Financial Statement elb.co.za Details File Format PDF Size: 3 MB Download This annual company financial statement template can be used as a guide to create your own financial statement. Financial performance refers . Please refer to the Payment & Financial Aid page for further information. 0000006779 00000 n %%EOF }fkYq1wq^gV%`VCf6- Take your career to the next level with this specialization. 16 0 R 17 0 R 18 0 R 19 0 R 20 0 R 21 0 R 22 0 R 23 0 R 24 0 R 25 0 R Page 5 of 10. This financial statement forms lets you calculate quarterly P&L for your business for entire year. English Updates to your application and enrollment status will be shown on your Dashboard. To understand a companys financial positionboth on its own and within its industryyou need to review and analyze several financial statements: balance sheets, income statements, cash flow statements, and annual reports. JJ's Lawn Care Service Balance Sheet May 28, 2003 Assets Liabilities and Owners' Equity Cash $ 3,425 Liabilities: Accounts Receivable 75 Notes Payable $ 13,000 Tools & Equipment 2,650 Accounts Payable 150 Truck 15,000 Total Liabilities 13,150 Owners' Equity: Capital Stock 8,000 Total $ 21,150 Total $ 21,150 McGraw-Hill/Irwin The McGraw-Hill << Insurance Company Financial Statement Template, 4. Shareholders equity is the amount owners invested in the companys stock plus or minus the companys earnings or losses since inception. /MediaBox [0.0 0.0 612.0 792.0] 36 0 obj Are you interested in gaining a toolkit for making smarter financial decisions and communicating decisions to key stakeholders? The . It does not show the flows into and out of the accounts during the period. /Resources 85 0 R /Annots [65 0 R] Creditors: A financial statement is essential for a creditor to understand the credit worthiness of the business along with liquidity. 2016-02, operating lease expenses should be included in income from continuing operations in the income . The purpose of a cash flow statement is to provide a detailed picture of what happened to a businesss cash during a specified duration of time, known as the accounting period. Science /Contents 111 0 R 0000002376 00000 n >> /Resources 121 0 R /Type /Page (3dd4258a2cf84b08bf9ae9235cb2c7f4_43) [21 0 R /XYZ null 753 null] An annual report is a publication that public corporations are required to publish annually to shareholders to describe their operational and financial conditions. /Resources 91 0 R /Parent 2 0 R It also includes things that cant be touched but nevertheless exist and have value, such as trademarks and patents. Court proceedings . Hence, the financial statement of a manufacturing unit would be different from that of a restaurant. This release is a summary of Fortum's January-December 2022 Financial Statements Bulletin. /Contents 72 0 R Ratio analysis and trends will be discussed. /Pages 2 0 R >> Learn how completing courses can boost your resume and move your career forward. Please review the Program Policies page for more details on refunds and deferrals. If a company has a debt-to-equity ratio of 2 to 1, it means that the company has two dollars of debt to every one dollar shareholders invest in the company. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ. 7. endobj They are: (1)balance sheets; (2)income statements; (3)cash flow statements; and (4)statements of shareholders equity. /MediaBox [0.0 0.0 612.0 792.0] 0000069582 00000 n <>stream An ability to understand the financial health of a company is one of the most vital skills for aspiring investors, entrepreneurs, and managers to develop. /Annots [42 0 R 43 0 R 44 0 R 45 0 R 46 0 R 47 0 R 48 0 R 49 0 R 50 0 R 51 0 R /Contents 40 0 R A financial statement provides timely and reliable information on the economic status of a company on a periodical basis. Political Science 1. 4076 0 obj The users of financial statements include management, investors, shareholders, creditors, government, bankers, employees, and the public at large. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction. State the importance of financial statements to(i) shareholders(ii) creditors(iii) government(iv) investors. Integrate HBS Online courses into your curriculum to support programs and create unique /Type /Page hSKSQ?93/4*m4$jTj!ik+G*jC 9.3 Financial Statements It has been emphasised that various users have diverse informational requirements. Open Microsoft excel on the top, give it a heading "Person financial statement" and keep blank fields for the date. Assets include physical property, such as plants, trucks, equipment and inventory. However, the law stipulates that they have to prepare the interim statements on a quarterly basis as well. >> 1. The footnotes to financial statements are packed with information. /Annots [83 0 R] Learn how to formulate a successful business strategy. On the other hand, interest expense is the money companies paid in interest for money they borrow. << Explain the basic assumptions and principles underlying financial . Competitive Exam The data is presented in a flattened format to help users analyze and compare corporate disclosure information over time and across registrants. /MediaBox [0.0 0.0 612.0 792.0] Generally, cash flow statements are divided into three main parts. /Type /Page >> /Parent 2 0 R 4. << It may be noted that the financial statements constitute an integral part of the annual report of the company in addition to the directors report, auditors report, corporate governance report, and management discussion and analysis. << The value of these documents lies in the story they tell when reviewed together. This article will teach you more about how to read a balance sheet. The second part of a cash flow statement shows the cash flow from all investing activities, which generally include purchases or sales of long-term assets, such as property, plant and equipment, as well as investment securities. 1. 4077 0 obj /Contents 60 0 R /Parent 2 0 R It provides you with income statement formats. For most companies, this section of the cash flow statement reconciles the net income (as shown on the income statement) to the actual cash the company received from or used in its operating activities. A financial statement helps determine the prospects and viability of new investments. (3dd4258a2cf84b08bf9ae9235cb2c7f4_46) [21 0 R /XYZ null 679 null] List any three objectives of financial statements? << >> In addition, it is possible inaccuracies or other errors were introduced into the data sets during the process of extracting the data and compiling the data sets. Operating expenses are different from costs of sales, which were deducted above, because operating expenses cannot be linked directly to the production of the products or services being sold. endstream endobj startxref Revenue recognition policies are an important part of accrual basis accounting. 0000008421 00000 n (Companies almost never distribute all of their earnings. /Resources 41 0 R @Dw:6u;DD4H{c_ '(8X;kGCp$In,1l1r}L~|ANn4'e#MIhF=~RuD8"yoIRCalM.-_HO=6QBG;aPm(.Q=T!YjMQ 'n;fI *6KO\2;Drfs%k[d4btx %mTDLw8ytt\~_my,DLz=AMpZmm@;*7G . f-X^V3jb>cYm1r Eu5i%DbUaLV,K22s;NKx"KbI eav's8coO%@Y@? , XAB2\&]%N@)8`Ll [#2X4k_PmL2Tcy+!d(=3:YLZZ_shzP q 8 0 obj A financial statement is helpful in evaluating the earning capacity of a firm. /Parent 2 0 R It includes every aspect of corporate activities. Its purpose is to convey an understanding of some financial aspects of a business firm. The Company BNSF Railway is a wholly-owned subsidiary of Burlington Northern Santa Fe, LLC (BNSF). The Financial Statement Data Sets below provide numeric information from the face financials of all financial statements. Financial statements are often audited by government agencies,. They reflect a combination of recorded facts, accounting principles, and personal judgments. /Parent 2 0 R /Resources 79 0 R One can use this to easily calculate the profits, sales and costs of the company. 5 0 obj endobj This leftover money belongs to the shareholders, or the owners, of the company. /Resources 109 0 R This would be useful for you when you apply for financial assistance from the banks. These are expenses that go toward supporting a companys operations for a given period for example, salaries of administrative personnel and costs of researching new products. If a company buys a piece of machinery, the cash flow statement would reflect this activity as a cash outflow from investing activities because it used cash. /MediaBox [0.0 0.0 612.0 792.0] +RF_fQTmVoB{s} h2*@D,p*o*JVA o,K@ LfN6OlL1{VBu~rY}SKMTotc06.2uUwyz"5v\9V B*GQSrDLUY}=Y(d*K7h*-. L{db)Ey6_0yK$y"\?8acq70J. /Type /Page endobj endobj to prepare your financial statements in accordance with an accounting framework that is appropriate for your business. Investors should review the full Commission filings before making any investment decision. o 0000009240 00000 n 27 0 obj 3p(0eJ?g 3g`on*obNP,0 9r7d~@; They provide investors, shareholders, and employees with greater insight into a companys mission and goals, compared to individual financial statements. >> The complete report is attached to this release as a PDF file. It uses and reorders the information from a companys balance sheet and income statement. Related: Financial Terminology: 20 Financial Terms to Know. endobj There are four main financial statements. On the left side of the balance sheet, companies list their assets. Introduction. /Annots [128 0 R] Balance sheets show what a company owns and what it owes at a fixed point in time. This top line is often referred to as gross revenues or sales. The corporate have to publish their annual statements on a statutory basis. These refer to the balance sheet (position statement) at the end of the accounting period, the statement of profit and loss of a company, and the cash flow statement. Valmiki 2. << 0000069846 00000 n 13 0 obj Printable Company Financial Statement Template, 12+ Company and Financial Report Templates, 11+ Non Profit Financial Statement Templates, 6+ Financial Statement Analysis Templates. The financial statements in English language have been translated from the Thai language financial statements. (3dd4258a2cf84b08bf9ae9235cb2c7f4_52) [21 0 R /XYZ null 274 null] List There would not be any need to audit the same. 2. Ideally, cash from operating income should routinely exceed net income, because a positive cash flow speaks to a companys financial stability and ability to grow its operations. Some income statements show interest income and interest expense separately. The accompanying notes are an integral part of these consolidated financial statements. However, all financial statements contain the following core statements: Financial Statements1 Typically, a complete set of financial statements comprises: a statement of financial position as at the end of the period; a statement of comprehensive income for the period; a statement of changes in equity for the period; a state- /Parent 2 0 R 143 0 obj <> endobj This process of spreading these costs is called depreciation or amortization. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice. While, preparing statement of profit and loss the revenue is included in the sales of the year in which the sale was undertaken even though the sale price may be received over a number of years. o Costofsale shouldreflectbeginning inventow, purchases, goods available for sale, ending inve tory, and cost ofgoods sold. Our easy online application is free, and no special documentation is required. Financial Statements (Unaudited) 4 Consolidated Balance Sheets 4 Consolidated Statements of Operations 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Redeemable Noncontrolling Interests and Equity 7 Consolidated Statements of Cash Flows 9 Notes to Consolidated Financial Statements 10 Item 2. These statements are a key to both financial modeling and accounting. >> /Annots [59 0 R] A financial statement is an organized collection of data according to logical and conceptual framework. 18+ Company Financial Statement Templates in PDF, 1. It helps them to decide whether further investments can be done for this business. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program. (3dd4258a2cf84b08bf9ae9235cb2c7f4_64) [24 0 R /XYZ null 320 null] Computer The applications vary slightly from program to program, but all ask for some personal background information. Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community. /Contents 114 0 R 0000001055 00000 n Its managements opportunity to tell investors what the financial statements show and do not show, as well as important trends and risks that have shaped the past or are reasonably likely to shape the companys future. But combined, they provide very powerful information for investors. 0000010547 00000 n All intercompany transactions and balances are eliminated in consolidation. 1 Twitter 2 Facebook 3RSS 4YouTube /Type /Page u|;tT&Zm:X~NzjRQsx8b{M_w+bSYm_!NLxF7Nsuwx$jU7S^No ,bxS1c*lbd|t'dqB+WRFrEEfNyIx Qr t33\`23rCP]1=g/TjvXdMw!s:~:%l~ S{uI?RDl>,gh+ZelZg_iYo. We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. endobj The information is presented without change from the "as filed" financial reports submitted by each registrant. (3dd4258a2cf84b08bf9ae9235cb2c7f4_58) [23 0 R /XYZ null 367 null] document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Accountancy /Kids [6 0 R 7 0 R 8 0 R 9 0 R 10 0 R 11 0 R 12 0 R 13 0 R 14 0 R 15 0 R /Parent 2 0 R /Resources 136 0 R << Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills. /Annots [134 0 R] We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. The statement of equity adjustments is also known as the statement of retained earnings in the United States. Its so important to read the footnotes. Data sets will be updated quarterly. >> Basis of measurement These consolidated financial statements have been prepared on a going concern and historical cost basis except for employee retirement benefits liabilities and cash, which are measured at fair value. /Parent 2 0 R the Company. 0000006962 00000 n 0000002773 00000 n A company's assets have to equal, or "balance," the sum of its liabilities and shareholders' equity. ] 37 0 obj /Type /Page Business, Economics, and Finance. << Goswami Tulsidas In other words, the company is taking on debt at twice the rate that its owners are investing in the company. HT0>u R(BH\H4iR#m,uYyb$L.*h@C!! /Type /Page It will not train you to be an accountant (just as a CPR course will not make you a cardiac doctor), but it should give you the confidence to be able to look at a set of financial statements and make sense of them. 14 0 obj A financial statement template is an essential tool in every company. If a company has an inventory turnover ratio of 2 to 1, it means that the companys inventory turned over twice in the reporting period. At each step, you make a deduction for certain costs or other operating expenses associated with earning the revenue. It contains information related to liquidity, profitability, financial viability, and solvency of an organization. Investors: For Investors who have invested or those planning to invest, a financial statement is necessary. /Parent 2 0 R /Type /Page Kanaiyalal Munshi /MediaBox [0.0 0.0 612.0 792.0] Financial statements are the basic and formal annual reports through which the corporatemanagement communicates financial information to its owners and various other external partieswhich include investors, tax authorities, government, employees, etc. endobj Some income statements combine the two numbers. Describe the components that supplement the financial statements in an annual report. Its called gross because expenses have not been deducted from it yet. 0 People often call this the bottom line.. 4. 0000004208 00000 n First, there are the fixed assets , which include the long-term assets of the firm, such as plant, equipment, land and buildings. The third part of a cash flow statement shows the cash flow from all financing activities. Current liabilities are obligations a company expects to pay off within the year. (3dd4258a2cf84b08bf9ae9235cb2c7f4_19) [13 0 R /XYZ null 752 null] /Parent 2 0 R +R X4#4fk^L*qNeSE1gZYflQ`3^*. endstream endobj startxref It also provides industry insights, managements discussion and analysis (MD&A), accounting policies, and additional investor information. Although this brochure discusses each financial statement separately, keep in mind that they are all related. Financial statements offer a window into the health of a company, which can be difficult to gauge using other means. /Count 29 /Contents 90 0 R /Type /Page This typically means they can either be sold or used by the company to make products or provide services that can be sold. >> << endobj The document is often shared as part of quarterly and annual reports, and shows financial trends, business activities (revenue and expenses), and comparisons over set periods. << 2. >> endobj /Resources 58 0 R /Contents 96 0 R /Type /Page Youve probably heard people banter around phrases like P/E ratio, current ratio and operating margin. But what do these terms mean and why dont they show up on financial statements? And information is the investors best tool when it comes to investing wisely. A balance sheet provides detailed information about a companys assets, liabilities and shareholders equity. << endobj >> This could be due, for example, to sales discounts or merchandise returns. Understanding Financial statements (11th edition) PDF Request . 12 0 obj /MediaBox [0.0 0.0 612.0 792.0] (3dd4258a2cf84b08bf9ae9235cb2c7f4_73) [33 0 R /XYZ null 561 null] << A horse called Read The Footnotes ran in the 2004 Kentucky Derby. /Resources 127 0 R << What are the limitations of financial statements? (3dd4258a2cf84b08bf9ae9235cb2c7f4_7) [8 0 R /XYZ null 754 null] /MediaBox [0.0 0.0 612.0 792.0] /Annots [77 0 R] endobj /Title (Railway 12.31.22 Financials) /Resources 133 0 R ), To understand how income statements are set up, think of them as a set of stairs. endobj 0000004155 00000 n >> Its called net because, if you can imagine a net, these revenues are left in the net after the deductions for returns and allowances have come out. 2015-16 endobj (3dd4258a2cf84b08bf9ae9235cb2c7f4_10) [10 0 R /XYZ null 752 null] This brochure is designed to help you gain a basic understanding of how to read financial statements. Here's a look at each and the purpose it serves: ` >>>/Metadata 71 0 R/Names 164 0 R/Outlines 130 0 R/Pages 138 0 R/Type/Catalog/ViewerPreferences<>>> endobj 145 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text]/XObject<>>>/Rotate 0/Tabs/W/Thumb 58 0 R/TrimBox[0.0 0.0 612.0 792.0]/Type/Page>> endobj 146 0 obj <>>>>>/Subtype/Form/Type/XObject>>stream 483 0 obj <>/Encrypt 474 0 R/Filter/FlateDecode/ID[<67ADF776B07180498D6E62136EC7A16F>]/Index[473 30]/Info 472 0 R/Length 66/Prev 448677/Root 475 0 R/Size 503/Type/XRef/W[1 2 1]>>stream Its the amount of money that would be left if all assets were sold and all liabilities paid. Just as a CPR class teaches you how to perform the basics of cardiac pulmonary resuscitation, this brochure will explain how to read the basic parts of a financial statement. Government: A financial statement helps the government in determining GDP, national income, industrial growth, etc. Maps Collection Essay Hence data and information are historical in nature. UPSC Free Material Every state has its own format for the individuals to submit their financial statements. The first element of a good business budget is figuring out how much money you bring in on a monthly basis. %PDF-1.4 (3dd4258a2cf84b08bf9ae9235cb2c7f4_16) [12 0 R /XYZ null 752 null] /MediaBox [0.0 0.0 612.0 792.0] /MediaBox [0.0 0.0 612.0 792.0] /Type /Catalog Interest income is the money companies make from keeping their cash in interest-bearing savings accounts, money market funds and the like. 0000011967 00000 n Statement Templates 11+ Business Financial Statement Templates in PDF | DOC. /Type /Page The following formula summarizes what a balance sheet shows: ASSETS = LIABILITIES + SHAREHOLDERS' EQUITY. /Contents 123 0 R (3dd4258a2cf84b08bf9ae9235cb2c7f4_55) [23 0 R /XYZ null 558 null] This is a financial statement templates wherein you will include the financial details of your business. /Annots [137 0 R] /Contents 93 0 R Swami Vivekanand This money belongs to the shareholders, who may be private owners or public investors. 9 0 obj A companys balance sheet is set up like the basic accounting equation shown above. Project Report /Version /1.4 38 0 obj Income statements show how much money a company made and spent over a period of time. expand leadership capabilities. >> 6LinkedIn 8 Email Updates. To examine how asset value is measured, let us begin with the way assets are categorized in the balance sheet. This calculation tells you how much money shareholders would receive for each share of stock they own if the company distributed all of its net income for the period. /MediaBox [0.0 0.0 612.0 792.0] State Liquor Price Lists Since Microsoft Excel has all options, it is recommended to use it. endobj If a companys stock is selling at $20 per share and the company is earning $2 per share, then the companys P/E Ratio is 10 to 1. It fails to highlight the current price of items as per the market and also inflated prices due to rising inflation in the market. >> Data contained in documents filed after 5:30PM Eastern on the last business day of a quarter will be included in the subsequent quarterly posting. The fourth financial statement, called a statement of shareholders equity, shows changes in the interests of the companys shareholders over time. endobj They show you the money. (3dd4258a2cf84b08bf9ae9235cb2c7f4_31) [15 0 R /XYZ null 490 null] %%EOF /Contents 84 0 R /Parent 2 0 R 29 0 obj /Annots [131 0 R] Biology Generally, these statements are issued at the end of a company's fiscal year instead of a calendar year. Balance sheets show what a company owns and what it owes at a fixed point in time. Assets are generally listed based on how quickly they will be converted into cash. It helps in tracking your cover data and creates weekly and monthly reports for your company. /Prev 139 0 R <> xO0+e eG+!$FL(M(T S?^E(,1Krn8'1RaLvv3!Sn6=MFH. Most companies expect to sell their inventory for cash within one year. 3. A balance sheet conveys the book value of a company. /ModDate (D:20230226230005+00'00') /Parent 2 0 R As a general rule, desirable ratios vary by industry. /Parent 2 0 R % No one financial statement tells the complete story. 1 Twitter 2 Facebook 3RSS 4YouTube /Type /Page The presentation is sub-divided into four cooperative sizes and types to make the information more useful. /MediaBox [0.0 0.0 612.0 792.0] Get Access to ALL Templates & Editors for Just $2 a month. This template helps to create annual profit projection for up to four physical products or services. << >> Professional Company Financial Statement, 16. So are investments a company makes. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. With a cash flow statement, you can see the types of activities that generate cash and use that information to make financial decisions. This data is extracted from exhibits to corporate financial reports filed with the Commission using eXtensible Business Reporting Language (XBRL). >> hb```,,@( /Contents 105 0 R He finished seventh, but if he had won, it would have been a victory for financial literacy proponents everywhere. /Contents 63 0 R Lets begin by looking at what financial statements do. 31 0 obj The financial statement in which accountants summarize and report asset value is the balance sheet. Brochures And Catalogues :)C9 +0\Zeh^Qe2u`kt{ynF ,$_:e]yt~YI8CU` I9 6LinkedIn 8 Email Updates. stream /Annots [113 0 R] /Annots [80 0 R] Step 1. 15 0 obj j6jZOX};F0_L% .Cfha.|R&PmevYOM2KgWm+Hj~g`1n9A_"64a(6&{eSVfW Md, (QJm-8rl;=?. =E&0}- Liabilities are generally listed based on their due dates. Because the data sets are derived from information provided by individual registrants, we cannot guarantee the accuracy of the data sets. And so on. You can download this highly customizable file in PDF and edit it easily without requiring any special program. Explore our online finance and accounting courses, and download our free course flowchart to determine which best aligns with your goals. << 4. Both are important numbers to know. Financial statement is biased in nature as it is dependent on human interference. XT[ASZt52/HPj`M-sh$D`O ]_;ry*cUjvGLM~+'U```````@b @NEKCw52g}@, vaA,61"456 . /Annots [68 0 R] After all operating expenses are deducted from gross profit, you arrive at operating profit before interest and income tax expenses. %%EOF /Annots [98 0 R] If you dont have a financial background, the good news is that there are steps you can take to learn about finance and jumpstart your career. (Net profit is also called net income or net earnings.) %%EOF 2 0 obj Financial statements seem to be as a confusing group of numbers but the investor can analyze and understand these numbers to get to important results concerning the company's current performance. 4. /Count 0 18051 0 obj <>/Filter/FlateDecode/ID[<45BDFD383FE8844F950143C63DC70223>]/Index[18045 16 18062 1]/Info 18044 0 R/Length 57/Prev 963204/Root 18046 0 R/Size 18063/Type/XRef/W[1 2 1]>>stream While some of these items may come up unexpectedly, like the purchase of a laptop to replace the one that crashed, others can be budgeted for months in advance, like that business retreat youve been eyeing, to protect your business from financial burden. /First 35 0 R << 4. /Resources 39 0 R /Resources 94 0 R /Type /Page Reviewing and understanding these financial documents can provide you with valuable insights about a company, including: Accountants, investors, shareholders, and company leadership need to be keenly aware of the financial health of an organization, but employees can also benefit from understanding balance sheets, income statements, cash flow statements, and annual reports. Liabilities refer to money a company owes to a debtor, such as outstanding payroll expenses, debt payments, rent and utility, bonds payable, and taxes. Hanuman Prasad /MediaBox [0.0 0.0 612.0 792.0] >> /Resources 64 0 R >> A financial statement helps in revealing the true financial position of a company.