bilal1558
FINANCIAL STATEMENTS
Financial Statements shows the details of the entity's financial performance and position and provides information including assets, liabilities, equity, income and expenses, shareholder contribution, cash flow and other related information. Financial statements are used by different users such as shareholders of an entity, investors, customers, staff, suppliers, government authority and other related stakeholders.
It is a final output of the adjusted trial balance which is prepared according the accounting cycles and has the following six components.
- Income statement
- Balance sheet
- Statements of Cash Flows
- Statements of changes in equity
- Notes and other disclosures
- Income Statements
Income Statement is also referred as statement of financial performance, profit and loss account because this statement provides users assess and measure the financial performance of an entity from period to period of the same entity or with competitors. Income statements is one of the financial statements components which summarizes the information of income and expenses or profit and loss in which user can analyze how much profit or loss the company is making during current and corresponding year i.e. last year.
The details of three main information are:
Revenues:
Revenue are generated from sales of goods or services that the entity generates during accounting period.
FINANCIAL STATEMENTS
Financial Statements shows the details of the entity's financial performance and position and provides information including assets, liabilities, equity, income and expenses, shareholder contribution, cash flow and other related information. Financial statements are used by different users such as shareholders of an entity, investors, customers, staff, suppliers, government authority and other related stakeholders.
It is a final output of the adjusted trial balance which is prepared according the accounting cycles and has the following six components.
- Income statement
- Balance sheet
- Statements of Cash Flows
- Statements of changes in equity
- Notes and other disclosures
- Income Statements
Income Statement is also referred as statement of financial performance, profit and loss account because this statement provides users assess and measure the financial performance of an entity from period to period of the same entity or with competitors. Income statements is one of the financial statements components which summarizes the information of income and expenses or profit and loss in which user can analyze how much profit or loss the company is making during current and corresponding year i.e. last year.
The details of three main information are:
Revenues:
Revenue are generated from sales of goods or services that the entity generates during accounting period.