| 4.3 The Role of Financial Statements in Program
Planning and Management Statement of Financial Position The statement of financial position (also known as a balance sheet) is a snapshot of an organization’s financial health. The statement of financial position shows all the assets and liabilities on a specific day, usually the last day of the fiscal year. Assets frequently include money in bank accounts, accounts receivable, and equipment owned, while liabilities frequently include accounts payable and debt service. By comparing the balance sheet at one point in time (such the last day of one fiscal year) with the balance sheet at another point in time (such as the last day of the previous fiscal year) on the same statement, it is possible to assess change in financial health (financial position). Statement of Cash Flow The statement of cash flow reports how the cash position only changed during the year.
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