Question

what is financial statements

Answer 1

Financial Statements are those statements which provide information about the profitability and the financial position of a business.

Financial Statements includes two statements which are :-

♣ Trading Account :
Trading Account is one of the financial statements which shows the result of buying and selling of goods and services of an accounting period.

♣ Profit and Loss Account :
It shows the overall result of business operations i.e., net profit earned or net loss incurred during accounting period.

Answer 2

Answer:

✭ Financial Statements ✭

         Records of certain financial processings which are done formally are called financial statements. The financial statements represent the specific financial activities and financial conditions about particular businesses or persons.

Following are the four mainly known financial statements-

♦ Balance Sheets :- The written entry representing the paid or received amount of that specific company.

♦ Income Statements :- During company's expenses paying, the stated either profit accounts or loss accounts.

♦ Cash flow Statements :- All cash inflows about which the company receives on the ongoing activities that time.

♦ Statements of Shareholders' Equity :- The Statement expressing the interest based on ownership of specific company from its beginning to its ending.

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