Financial Statements for Dental and Medical
The key financial statements for Dental and Medical Laboratories in India include:
1. Income Statement (Profit and Loss Statement):
This financial statement presents the revenues earned and expenses incurre by the dental and medical laboratory during a specific period, typically a year.
It shows the laboratory’s net income or net loss, which can calculate by subtracting total expenses from total revenues.
Auditing this statement ensures that all revenues and expenses can accurately record and classified, and that the laboratory’s financial performance accurately represented.
2. Balance Sheet (Statement of Financial Position):
The balance sheet provides a snapshot of the dental and medical laboratory’s financial position at a specific date.
It lists the laboratory’s assets, liabilities, and shareholders’ equity. Assets include items like equipment, inventory, and accounts receivable, while liabilities encompass debts and obligations.
Shareholders’ equity represents the ownership interest in the laboratory. Auditing the balance sheet verifies the accuracy of these financial positions and ensures that the equation “”Assets = Liabilities + Shareholders’ Equity“” holds true.
3. Cash Flow Statement:
The statement of cash flows monitors the movement of cash and its equivalents over a designated duration.
It is segmented into three categories: operational undertakings, investment ventures, and funding maneuvers.
Auditing the cash flow statement ensures that the dental and medical laboratory’s cash movements are accurately recorded and classified, confirming the liquidity and solvency of the business.
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