| Generally financial statements are a formal record of | | | | The notes normally explain each entry on the balance |
| the financial activities of a business, person, or other | | | | sheet, income statement and cash flow statement in |
| thing. Financial statements like a written statement | | | | supplementary detail. Notes to financial statements are |
| which quantitatively describes the financial strength of | | | | measured a fundamental part of the financial |
| a company. This includes an income statement and a | | | | statements. |
| balance sheet, and regularly also includes a cash flow | | | | If you desire personal financial statements so its may |
| statement. Financial statements are regularly compiled | | | | be mandatory from persons applying for a personal |
| on a quarterly and yearly basis. | | | | loan. Normally, a personal financial statement consists |
| Financial statements are important futures for each | | | | of a single form for exposure individually held assets |
| and every business. For a business venture, all the | | | | and liabilities (debts), or personal sources of income |
| appropriate financial information, offered in a structured | | | | and expenses, or both. The form to be filled out is |
| way and in a form simple to understand, are called the | | | | determined by the organization supplying the loan. |
| financial statements. | | | | The purpose of financial statements is to give |
| They normally consist of four essential financial | | | | information regarding the financial situation, |
| statements such as: | | | | performance and changes in financial situation of a |
| - Balance sheet | | | | venture that is helpful to a wide range of users in |
| - Income statement | | | | making financial decisions. Financial statements should |
| - Statement of retained earnings | | | | be comprehensible, appropriate, reliable and |
| - Statement of cash flows | | | | comparable. Reported property, liabilities and equity are |
| For huge corporations, these statements are | | | | directly connected to an organization's financial |
| frequently multifaceted and might be include a | | | | situation. Reported income and operating cost are |
| wide-ranging set of notes to the financial statements | | | | directly connected to an organization's financial |
| and management discussion and also financial analysis. | | | | performance. |