Financial Statements: Definition, Component, Importance
Financial statements are integrated information of recorded events, accounting conventions and individual judgment capacity.
Financial statements are integrated information of recorded events, accounting conventions and individual judgment capacity.
Footnotes to the financial statements refer to additional information provided in a company’s financial statements. Financial statements footnotes describe left out items of the balance sheet and income statement; which have a significant impact on the companies profitability and operations. Notes to financial statements are those footnote at the bottom of the financial statement. These…
Balance sheet consists of assets, liabilities and owner’s equity for a accounting period. 2 types of balance sheet are (1) Unclassified, (2) Classified Balance Sheet.
Income Statement shows net profit or net loss arising out of activities of a particular accounting period of any business organization. Income statements are 2 types, Single-step income statement and Multiple-step income statement for finding net profit or loss an accounting period.