Question

‘An accounting report is essential a report which must be able to fulfil
certain basic criteria ‘ Explain? List the various types of accounting reports.

Answer 1

It is an essential report which should be able to fulfill some basic criteria because, the management of a company depends upon it. The different types of accounting reports include balance sheet and income statement.

Explanation:

An accounting report refers to a periodic statement that shows the financial status of an organization at a particular time period.  

It is said to be an essential report which should be able to fulfill some basic criteria. This is because, it is an only statement that contains all relevant information about a company in order to meet a specific aim. The basic criteria for making an accounting report must be fulfilled to make the work of the management easy.

The basic criterion that must be fulfilled are as follows:

i. Summarization

ii. Completeness

iii. Accuracy

iv. Relevance

v. Timeliness

The different types of accounting reports include:

i. Balance sheet

ii. Capital statement

iii. Cash flow statement

iv. Income statement

v. Statement of stockholder's equity