Financial Statement
Financial Statement;- are prepared to demonstrate financial results to the users of financial information. These are the reports, which are prepared by the accounting department and are used by the different people inclusive of the management.
Financial Statement Component:-
Balance Sheet:- Show financial position (Assets , liabilities and Owner Equity/Capital)
Income Statement:- Show financial performance (Profit and Loss)
Statement of Cash Flow:- Show inflows and outflows of cash and cash equivalents for a given time period ending at a specified date.
Statement of Changes Equity:- Show the change in owner position
Notes (to the accounts):- Includes accounting policies, disclosures and other explanatory information.