Definition of Financial statements
Financial statements are often audited by government departments, bookkeeping firms, firms, etc. to ensure precision and for tax, financing or investing reasons.
For companies usually include statements, balance sheets, and income statements and cash flows.
Brief Explanation of Financial statements
It is standard practice for companies to present financial statement that adhere to generally accepted accounting principles to maintain a continual of details and presentation across international boundaries. The objective of financial statement is to provide details about the budget, efficiency and changes in the budget of an enterprise that is useful to a number of users in making financial choices. It should be easy to understand, relevant, efficient and comparable. Financial experts rely on details to measure the efficiency and make forecasts about the future direction of a company’s stock price. One of the most important resources of efficient and audited financial details is the yearly report, which contains the firm’s financial statements. The three main financial statement are the balance sheet, cash flow statement, and income statement.