Financial statements are the backbone of financial decision making for any company. It produces information about its past, present, and future performance. The complexity of the financial statements varies by the size of the organization.
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A financial statement looks after the changes in asset values over a specified range of time. The prepared statement gives resumes about liquidities and solvencies before any procedure of liquidation or dissolution is performed by the company.
It also analyses the adequacy of resources with management’s projections. Financial statements also provide data that can be scrutinised for anomalies or changes against certain parameters that have been stipulated by management only few months back only to remotely find out what has really happened over the stated period. It provides info on income, liabilities, assets and liabilities alongside
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Why Is The Main Purpose Of Financial Statements?
How Important Are Financial Statements To A Business?
How Do You Read Financial Statements?
What Are The Most Common Types Of Financial Statements In Accounting?
Financial statements are a set of reports that provide information about the financial performance of a company.
Financial statements are usually prepared by accountants and auditors. They are used to help investors, creditors, and other stakeholders make decisions about the company’s future.
The three main financial statements are:
1) The balance sheet
2) The income statement
3) The cash flow statement
What Is The Difference Between Financial Statements And Financial Reporting?
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