Mohamed Hesham

  • 2018-11-04 10:33:11

Format of financial statements: let’s at first take a brief about financial statements Financial statements provide a picture of the company performance, financial position, and cash flows of a business There is Types of financial statements like, 1. Balance sheet. 2. Income statement 3. Statement of cash flows. 4. Statement of changes in equity. According to balance sheet: A Balance Sheet is a statement of the financial position of a business which states the assets, liabilities, and owners' equity. All accounts in your General Ledger are categorized as an asset, a liability, or equity. The relationship between them is expressed in this equation: Assets = Liabilities + Equity 2. Income Statement: it`s show revenues first, followed by cost of goods sold and expenses. The cost of goods sold are subtracted from the revenue to calculate the gross income and then expenses are subtracted from the gross income to calculate the net income of the business. 3. Statement of cash flow: This report shows the cash inflows and outflows by an organization during the reporting period. These cash flows are broken down into three classifications, which are operating activities, investing activities, and financing activities. 4. Statement of changes in equity: This report documents all changes in equity during the reporting period. These changes include the issuance or purchase of shares, dividends issued, and profits or losses. Please find the attached link financial statements format.

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