Balance Sheet: Balance Sheet is define as ” It is simply a list of business’s assets and liabilities at a given date and time”.
Balance sheet ia prepaared annually in most cases.It11 shows whether a business is going well or in a loss. If assests are greater than the liabilities of a any construction company’s, it is in profit mood. If liabilities are more than assets, the company is in loss or maybe going in loss.
Cash Flow Statement: Cash Flow is basically ” The incoming and outgoing of a money from a company’s account is called Cash flow statement”
So, Cash flow statement has two types
1- Positive Cashflow: When there is a more inflow of a money and less outflow in a company’s account. It is a good for the company as it is easy for it to pay salaries to engineers, labours and other employees.
2- Negative Cashflow: When there is less inflow and more outflow of a money in a company’s account. It may cause a great trouble for a company as company’s assets are decreasing day by day. It may unable to to continue construction activites and procurement of materials for project completion.