Balance Sheet and Profit & Loss Statement

[Bond Magician]

What is a balance sheet and profit & loss statement?

[lifeisgood]

A Balance Sheet is a financial statement that lists all the sources (namely, the liabilities and net worth) and uses (or assets) a firm has at the close of its accounting period.

A Profit & Loss Statement simply shows the company's profit and loss accounts in terms of revenue, expenditure and the profit and/or loss resulting from operations for a given 'financial year'.

[grasshopper]

Do these financial statements need to be prepared externally by a company that is independent of your company or can they be prepared internally? Can I include a bank statement?

[lifeisgood]

The surety's prefer to have a certified CPA prepare the statements which generally consist of the the cover sheet, accountants report and the separate categories which can include the Balance Sheets, Statements of Income, Statements of Retained Earnings(Deficit), Statements of Cash Flow, Notes on the Financial Statements, etc.

[Surety Wizard]

Will the Surety Company accept tax returns for the company? They have basically the same information and they are prepared by a CPA.