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There are four types of financial statements they are the income statement the balance sheet, the position statement and the statement of changes in owner’s equity (Scott, 2003). The two most common financial statements are the balance sheet and the income statement. The income statement which is also referred to as profit and loses statement explains what income was earned, costs and expenses incurred and net profit during the defined accounting period...
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The income statement which is also referred to as profit and loses statement explains what income was earned, costs and expenses incurred and net profit during the defined accounting period. The balance sheet explains what a company’s assets, liabilities and owner equity. The balance sheet can be used as a statement of a company’s relative wealth or financial position...
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The statement of financial performance is based on data relating to past transactions and events. Hence the statement of financial performance is of no use to an investor’s decision making process.
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