Introduction to Financial Statements
Introduction to Financial Statements Any join stock company or corporation has established with its own a legal entity and performs various business activities for the purpose of earning profits. There are a number of stakeholders includes shareholders, BOD, management of the company, Government agencies, creditors, etc. who are keen to know about the results of its financial activities performed during a certain period of time. Therefore, in order to communicate the results of business operations and financial position to its stakeholders, the company prepares and publishes the statements of its financial affairs on a periodic basis. The entire financial activities has published though the documents called Financial Statements. Meaning of Financial Statements The financial statements are written reports of a financial affairs of a company. It include its trading and profit and loss account known as Income Statement, Balance Sheet, and Cash Flow Statements. To known about its compone