What is a financial statement and what are its components❓
What is a financial statement and what are its components❓
In a company, all you need is financial statements. Accounting that gives us a rich picture of all income-expenses within the company and also includes additional taxes. that will allow us to plan our finances for the future
🔹 Components of financial statements
1. Statement of financial position
- Current / Non-Current Assets
- Current / Non-Current Debt
- Equity
2. Profit-Loss Statement
- income
- expenses
- net profit (loss)
3. Statement of change of shareholders
4. Cash flow
5. Additional notes accompanying the statements
🔹Benefits
- Income statement showing the results of the work that the project is profitable or not Can you make money? How are the costs?
- Statement of Financial Position It helps us to see the overview, financial position, liquidity, debt repayment, management efficiency and work.
- Statement of change of shareholders helps to see the popularity of shareholders Value the business Calculated from the personal assets of the holder.
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