What must an annual statement filed by funeral establishments include?

The annual statement filed by funeral establishments must include a balance sheet and a profit/loss statement because these documents provide a comprehensive overview of the financial health of the establishment. A balance sheet outlines the assets, liabilities, and equity of the business at a specific point in time, while the profit/loss statement, also known as an income statement, details revenue and expenses over a particular period. Together, these financial reports allow regulatory bodies and stakeholders to assess the establishment's financial performance, stability, and compliance with financial regulations.

Understanding the financial positioning of a funeral establishment is crucial for transparency and accountability, which is why these documents are a core requirement in the annual statement. They contribute significantly to monitoring fiscal responsibility and ensuring that the business operates within the legal framework set by the state.