ABSTRACT
This chapter helps us to gain an understanding of the components of balance sheets and income statements the financial implications of balance sheets and income statements, job cost management systems, job cost management, management of profit centers, and contract management responsibilities. The balance sheet is the most important document produced by an accounting system. It indicates the financial status of a business on a specified date and establishes the company's solvency, or its ability to meet its financial obligations. Direct costs, which are associated with production, labor, and materials, are the primary focus of the profit center income statements. A cash flow report indicates the source and current amount of cash received, the current cash disbursements, and the cash balance. Financial management is proactive engagement with financial reports, which involves analyzing information on the reports and implementing adjustments wherever necessary to meet budgeted projections.
