What is a financial statement?
A financial statement is an official record of the firm, which investigates the whole financial data of the firm. The principle point of the financial statement is to give data and comprehend the financial parts of the firm. Consequently, the arrangement of the financial statement is imperative as much as the financial choices.
Its motivation is to pass on a comprehension of financial parts of a business firm. It may demonstrate a position at a minute of time as on account of an asset report or may uncover a management of exercises over a given timeframe, as on account of a pay articulation.
Financial statements are the synopsis of the bookkeeping procedure, which gives valuable data to both inner and outside gatherings.
Financial statement, by and large, comprises of two important statements:
(i) The salary articulation or benefit and misfortune account.
(ii) Balance sheet or the position articulation.
A part from that, the business concern additionally readies a portion of alternate parts of proclamations, which are exceptionally helpful to the inside reason, for example,
a) Statement of changes in proprietor’s equity.
b) Statement of changes in financial position.