Financial Statements

fiscal Statements INTRODUCTION : A written report which quantitatively describes the financial health of a company. This includes an income statement and a remnant sheet, and often also includes a capital flow statement. Financial statements are usually compiled on a quarterly and annual basis. Summary report that shows how a firm has used the property entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position. The three basic financial statements are the (1) balance sheet, which shows firms assets, liabilities, and net worth on a verbalise date; (2) income statement (also called profit & evil account), which shows how the net income of the firm is arrived at over a stated period, and (3) cash flow statement, which shows the inflows and outflows of cash caused by the firms activities during a stated period Responsibility for Financial Statements The management of an entity has the primary province for preparing and presenting the entitys financial statements.

The Objective of Financial Statements The objective of financial statements is to submit information slightly the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. Financial Position The financial position of an entity is moved(p) by the economic resources it controls, its financial structure, its liquidity and solvency, and its capacity to conciliate to changes in the environment in which it operates. The balance sheet presents this gentle of information. Changes in Financial Position Users of financial statements seek information about the investing, financing and operating activities that an entity has undertaken during the reporting period. This information helps in assessing how substantially the entity is able to generate cash and cash equivalents and how it uses those cash flows. The cash flow statement provides... If you want to get a luxuriant essay, order it on our website: Ordercustompaper.com

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