These refer to the summaries of the organisation’s financial performance.
The main financial statements include the statement of profit or loss (income statement), statement of financial position balance sheet, and statement of cash flow statements. Depending on the size of the business and its ownership structure, these statements may be subject to external audit and publication. Although they show the financial performance and financial position, they do not indicate whether this could have been better or worse depending on management decisions, for example, they show the profit/loss figure but there is nothing to indicate whether that figure is satisfactory in the business’s circumstances.
Financial statements is a term normally found in financial accounting and financial reporting.
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