Contents
Introduction 1
 Balance sheet
 Income statement
Describe two principle financial statements their users, format, frequency and content 2
 Financial accounting
 Management accounting
Compare & contrast financial accounting and management accounting 3

Describe the relevance ,application and limitations of financial ratio analysis with reference to three types of users of financial statement 4

Conclusion 5

1. Introduction. -Finance is one of the most significant elements in order to succeed in business performance. Managers are able to decide ways how they will proceed their business and what extent they will broaden or minimize the scale of their business through various figures of finance. Also, those of things help shareholders to predict organisation's promising. Accounting is a basic tool in figuring out how entity spend asset and how they make a profit or how loss happens. Some specialists such as managers, shareholder, accountants use these information. In accounting, there are some methods of analysing how healthy company's financial statement is. Some types of useful ways will be introduced on this essay and will be explained why accounting and finance is a crucial factors of business.

2 .Describe two principle financial statements(their users ,format, frequency and content)
 Balance sheet : it is a summary of the financial position of the business. It mainly consists of three factors which are assets, liabilities and equity. There is a basic format about balance sheet - Format of balance sheet
① Assets are made by a business to create future benefits There are some resources included in assets. Cash such as coins and notes has been paid in bank account. Assets show the quantity of money people or organisation possess to the business. It concludes both debt and property. Also, some items such as