Best Financial Statements Concepts Homework Help
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A financial statement is a financial record or a formal record of the financial activities, it also tells about the position of the business, or other entity.Financial statements are written reports which quantitatively describes the financial health of a company. Financial statements mainly include balance sheets, income statement and sometimes involve cash flow statements. These statements are compiled on quarterly and annual basis.
Financial Statements accounting concepts:
A definition which is issued by Financial Accounting Standard Board, as it covers broad financial reporting concepts. The main purpose of SFAC is to provide a general overview of accounting concepts, ideas and definition. These statements details about accounting standard and guidelines on accounting policies which is set by FASB. These standards are created to ensure a high level of corporate transparency. These statements are used as blueprint for the future development of reporting procedure and policies.
These are the typically included basic financial statements they are:
• A balance sheet is also referred as statement of financial position. It is accompanied by company’s assets, liabilities and equity.
• A cash flow statement has a report of company’s cash flow activities, financing and investing activities.
• An income statement also called as statement of revenue and expenses, it also guides about profit and loss reports. These includes sales and the various expenses incurred during the stated period.
• An equity statement reports on the changes in equity of the company during the stated period.
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