In accounting, we measure profitability for a period, such as a month or year, by comparing the revenues earned with the expenses incurred to produce these revenues. Black Friday Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) View More, All in One Financial Analyst Bundle (250+ Courses, 40+ Projects), 250+ Courses | 40+ Projects | 1000+ Hours | Full Lifetime Access | Certificate of Completion. Veechi Curtis is a qualified accountant and business consultant who specialises in teaching small businesses about technology and finance. a month) and its end. Financial statements are written reports prepared by company’s management to present its financial affairs in a given period (quarter, six monthly or yearly). Remember the transaction analysis we were working on for Metro Courier? Together they represent the profitability and strength of a company. The above is just a snapshot of how the balance sheet works. Treasury shares are the sum total of all the common shares that have been purchased back by the company. The net income (or loss) calculated is used in the statement of retained earnings.
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