Financial Statements in the Hospitality Industry

Financial Statements in the Hospitality Industry
The balance sheet, income statement and cash flow are three of the most important financial statements in a business. The cash flow states the business’ various ways of earning and spending cash. The cash inflow focuses on the money received by the business through day-to-day operations, the purchase of non-current assets or financing activity. Meanwhile, the cash outflow record activities that result in the spending of cash resources.
The income statement is also known as the profit and loss statement or the statements of financial performance. It gives a summary of income and expenses of a business and enables the owner to see the profit that the business has incurred on a certain point in time. The income statement is often prepared monthly, quarterly and annually.
The balance shee...