Financial Statement
![Picture](/uploads/4/7/5/3/47531097/1425298421.png)
The financial statement basically reflects the financial character of a business organization. It shows the profit level for both the long and the short term.
Types of Financial Statements:
There are four types of financial statements each of which can be detailed as follows:
Uses of Financial Statements:
Types of Financial Statements:
There are four types of financial statements each of which can be detailed as follows:
- Statement of Cash Flows: The cash flow activities are recorded in this type of financial statement. Cash flow is recorded in different activities like operating, financing and investing.
- Income Statement: The income statement is alternatively known as the Profit or Loss Statement. It records all the financial changes that occurred due to operating the company over a certain time period.
- Balance Sheet: The balance sheet keeps a record of the financial position of a company that includes its assets, liabilities and the net equity.
- Statement of Retained Earnings: This type of financial statement records the changes , if any, of retained earnings over a period of time.
Uses of Financial Statements:
- The financial statements that are prepared for large organisations are very complicated. It contains an extensive set analysis of the financial data.
- It also contains notes to the financial statements. The notes are used to understand each and every item of the balance sheet.
- It also provides a detailed analysis of the income and cash flow statements.