ABSTRACT
Financial accounts are a historical record of a business' performance over a past period – usually one year – for the benefit of external users such as shareholders, employees, suppliers, bankers and authorities. Balance sheet is a snapshot of a business' assets and its liabilities on a particular day – e.g. the last day of our financial year. The balance sheet is so called because there is a debit entry and a credit entry for everything, so the total value of the assets is always the same value as the total of the liabilities. Financial accounts include the profit and loss account, balance sheet and cashflow statement. Long-term liabilities include: creditors due after one year; and capital and reserves.
