What is financial statement?

Financial Statement ( Including Statement of Financial Position, Statement of Profit or loss & other Comprehensive income, statement of Cash flow and Statement of Changes in Equity) Which represent the financial position/performance of an entity

Statement of Profit or Loss & Other Comprehensive Income. This records the performance of the business  revenue , Expenses  Gross profit and Net Profit

Statement of Financial Position: Record Assets , Equity and Liabilities of business.

Statement of Cash Flow : is measure how much cash the entity has as of its reporting date and  this most balance with the cash in the statement of Financial Position under current asset. Cash flow includes : Cash flow from Operating Activities- Operating profit and dep'n ETC

Cashflow From Financing Activities  -Purchases of PPE and its proceed

Cash flow from Investing activities- Issuing of shares

Financial Statements represent a formal record of the financial activities of an entity. These are written reports that quantify the financial strength, performance and liquidity of a company. Financial Statements reflect the financial effects of business transactions and events on the entity.

Financial Statements provide information about::

- Financial position

- Financial performance

- Cash flows

Components of financial statements:

- Balance sheet > Assets liabilities and equities

- Income statement> Income and expenses

- Statement of changes in equity> All changes in equity or changes in equity other than those with equity holders

- Cash flow statement> Summary of major cash inflows and outflows. Dealt with in IAS7

- Notes> Significant accounting policies and other explanatory notes.

Financial Statement is a record of financial activities of the company. Financial statements represent the the financial position of an organisation.

A financial statement is a formal record of the financial activities of a organization, person etc. e.g. Balance Sheet, Profit & Loss Account, Cash Flow Statement etc