Financial Statements

Financial Statements are summarized

accounting reports prepared periodically to
inform interested parties as to the financial
condition and operating results of the business.
 Financial Statements
1. Statement of Financial Performance
(Income Statement)
2.
3. Statement of Financial Position (Balance
Sheet)
4. Statement of Cash Flow
5. Notes to the Financial Statements
Statement of Financial Performance (Income Statement)

The financial statement that

summarizes revenues and
expenses for a specific period
of time, usually a month or a
year. Income statements are
always prepared for a period of

the title.
The financial report that
summarizes all the changes in

occurred during a specific

period.
Statement of Financial Position (Balance Sheet)

The financial report that shows the

amount and nature of business

equity (capital) as of a specific

point in time. The account
balances at the end of accounting
year will carry forward to become
the beginning balances of the
subsequent year
Statement of Cash Flows

The financial statement that

shows the inflows and
outflows of cash in the
different activities of the
business (operating, investing,
and financing activities).
 Notes to Financial Statements
Qualitative, quantitative, and financial information that
could affect the decisions of users are included in the
notes to financial statements.

The notes to the financial statements communicate

information necessary for a fair presentation of financial
position and results of operations that is not readily
apparent from, or not included in, the financial statements
themselves.