Financial statements for Audit
The key Financial statements for Audit in an Automotive Repair Services business in India include the Income Statement, the Balance Sheet, and the Cash Flow Statement.
1. Income Statement:
This statement provides a summary of the revenue earned and expenses incurred during a specific period, typically a year.
For an automotive repair services business, the income statement would show details of service revenue, parts sales, labor costs, operating expenses (such as rent, utilities, and marketing), and the resulting net profit or loss.
It offers insights into the business’s profitability and operational efficiency.
2. Balance Sheet:
The balance sheet presents a snapshot of a company’s financial position at a specific point in time.
It lists the business’s assets (such as equipment, inventory, accounts receivable) and liabilities (like loans, accounts payable) along with its owner’s equity.
This statement gives an overview of the company’s financial health, its ability to meet short-term and long-term obligations, and its overall net worth.
• Cash Flow Statement:
The cash flow statement details the inflows and outflows of cash during a particular period. It’s divided into three categories, operating activities, investing activities, and financing activities.
For an automotive repair services business, this statement would show cash received from customers, cash paid to suppliers, equipment purchases, loan payments, and other financial transactions.
This statement helps assess the company’s liquidity, its ability to generate cash, and how it’s financing its operations.
To visit: https://www.incometax.gov.in
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