Preparation of financial statements with the help of journal subsidiary book of any partnership firm of data and information
Answers
Answer:
Financial statements
Explanation:
The financial statements are one of the backbones of a company because they provide the accurate state of a company.Each and every transaction is recorded in a financial statements of a company.
The primary focus of financial reporting is information about earnings and its components. Information about earnings based on accrual accounting usually provides a better indication of an enterprise's present and continuing ability to generate positive cash flows than that provided by cash receipts and payments.
MAJOR FINANCIAL STATEMENTS
The basic financial statements of an enterprise include the
1) balance sheet (or statement of financial position)
2) income statement
3) cash flow statement
4) statement of changes in owners' equity or stockholders' equity.
The balance sheet provides a snapshot of an entity as of a particular date. It list the entity's assets, liabilities, and in the case of a corporation, the stockholders' equity on a specific date. The income statement presents a summary of the revenues, gains, expenses, losses, and net income or net loss of an entity for a specific period. This statement is similar to a moving picture of the entity's operations during this period of time. The cash flow statement summarizes an entity's cash receipts and cash payments relating to its operating, investing, and financing activities during a particular period. A statement of changes in owners' equity or stockholders' equity reconciles the beginning of the period equity of an enterprise with its ending balance.
Items currently reported in financial statements are measured by different attributes (for example, historical cost, current cost, current market value, net reliable value, and present value of future cash flows