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Different Types Of Financial Statement

by Emilia Brown Content Manager

The financial statement reflects the clear picture of the financial performance of a company in the last financial year and the exact financial status of the firm by the end of the financial year. Every type of organisation who does financial transactions prepares financial statements every year. Preparing the financial statement is important for reflecting the annual report of the company. It is used by lenders, creditors, investment community, and management to measure the performance of an organisation. The four major types of financial statements that Accounting Assignment Help experts have discussed in this write-up below.

Forms of financial statements

All four major forms of financial statements are as follows.

Income statement

Another name for the income statement is gain and loss statement that shows the firm's financial condition in the form of net profit or loss within a specific period of time. There are two major elements included in the income statement - income and expenses. Income means the amount that the business earns within a specific period and expensive means the amount a business spends within a specific period.

Cash flow statement

The cash flow statement shows the movement of the firm's cash within a period. This statement helps professionals to understand the movement of cash in an organisation. There are three major segments in the cash flow - operating activities, financing activities, and investing activities.

Balance sheet

The balance sheet of an organisation is also called the statement of financial position that deals with the financial status of a firm at a specific date. There are three major elements in the balance sheet - assets, liabilities, and equity. Assets are goods that are owned by the firm such as inventory, machinery, cash etc. Liabilities means the amount or something that a firm owes to someone else, such as - the bank loan, creditors, etc. Equity shows the difference between the assets and liability. It is something that the organisation owes to the owner.

Statement of retained earnings

The statement of retained earnings is also called the statement of changes in equity. It reflects the movement in the equity of the owner within a period of time. Below are the major components of the statement of changes in equity.

      Dividend payments

      Net profit or loss at the period reported in the income statement

      Share capital repaid or issued during the period

      Profit or losses data reflected directly in the equity

      Effects of a transformation in the accounting policy

Scholars learning accountancy in Canada are given complex assessments days gone financial statements that require strong analytical thinking and problem-solving skills. Learners find it difficult to finish their assignment on their own because it is too much time consuming and requires excessive efforts. So, take assistance from experts who offer accounting assignment help for university scholars. These Assignment Help Canada

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About Emilia Brown Innovator   Content Manager

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Joined APSense since, July 30th, 2020, From Ontario, Canada.

Created on Aug 28th 2020 06:00. Viewed 292 times.

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