Financial

Financial statement Is a collection of financial transaction, arranged and grouped, used to assess the health level of the company from finacial perspective. In the financial statement, detail line item may differ from company to company but the items are similiar enough to allow comparisons which over time will show the evolution of company's financial health over time. Comparisons between similiar companies and industrial benchmark may indicates company's competitivenes.
Income statement give indication of financial result of the company for a given period typically in one year period
Revenue - expenses = Net profit (loss)
Income statement is more meaningful if set for contrasted between period, industry player or set benchmark.`

Financial position at specific date, monthly, quarterly and annually which indicates primarily the total assets of the company and means of financing of the assest in form of owner's equity and borrowinngs.
Assest = equity + liability
Total assest always equal to equity and liability and any changes at any one of the category, a balancing entry is required to achieve the balancing equation.
Other important concepts are the working capital, anf financial leverage, which is the former is liquid capital required to enable or facilitate operation including inventory cash and financial levelerage is the used of borrowed source of fund to finance the company.

Lastly the paper tells about the cash flow, which is a means to track the amount of cash (or equivalent) over time including the sources and application of cash.

Application of financial statement
The application for financial statement in my workplace is the understanding of the basic can help us in the alignment of the corporate financial agenda and we can also starts doing self assessment on the performance of the department ot division and even the section against other division, department or section or even benchmark ourself against our competitors and also within the industry.

Further application of the these concepts is that the use of financial ratio for performance ration which naturalize the size differential in performance comparisons and inclusion of more dimensioan to performance evaluation for example the balance score card.