FINANCIAL STATEMENTS

Financial Statements

Introduction

The primary means to report general purpose financial reporting to people outside the trade organization is a set of reports called financial statements. People who receive these reports are called financial statement users. The financial statements are designed to assist users in identifying key relationships and trends.

The financial statements of most companies are classified and are presented as comparative. A package of financial statements comprises four related accounting reports in a few pages summarizing financial resources, liabilities, and profitability and cash transactions of a business. The complete set includes the following accounting reports:

Balance Sheet

A balance sheet is a report ...