There are four financial statements that could be made after transactions are identified, recorded, and summarized, those are: an income statement, an owner's equity statement, a balance sheet, and a statement of cash flow.
An income statement presents the revenues and expenses and resulting net income or net loss of company for a spesific period of time.
A balance sheet presents the assets, liabilities, and owner's equity of a company at a spesific date.
An owner's equity statement summarizes the changes in owner's equity for a spesific period of time.
A statement of cash flow summarizes information concerning the cash inflows and outflows for a pesific period of time.
Additionally, every set of financial statements is accompanied by explanationary notes and supporting schedules that are an integral part of the statements. Be sure to carefully examine the format and content of each statement.
No comments:
Post a Comment