FINANCIAL STATEMENTS

Management accounting

12-102

AMANPREET KAUR

WHAT ARE FINANCIAL STATEMENTS ?

A FINANCIAL STATEMENT OF RECORD OF THE

FINANCIAL ACTIVITIES OF THE BUSINESS,

PERSON, OR OTHER ENTITY.

RELEVANT FINANCIAL INFORMATION IS

PRESENTED IN A STRUCTURED MANNER AND

IN A FORM EASY TO UNDERSTAND.

TYPES OF BALANCE SHEET

BALANCE SHEETINCOME

STATEMENT

STATEMENT OF

CASH FLOW

BALANCE SHEET

INCOME STATEMENT

CASH FLOW

FUND FLOW

STATEMENT OF WORKING CAPITAL CHANGE

STATEMENTS OF FUNDS FROM OPERATIONS

STATEMENT OF SOURCES AND APPLICATION

OF FUNDS

ADVANTAGES OF FINANCIAL STATEMENTS

LIQUIDITY

PROFITABILITY EFFICIENCY

LIMITS

DISADVANTAGES OF FINANCIAL

STATEMENTS

MISLEAD THE

USERS

NOT USEFUL FOR

PLANNING

COMPARISION

NOT POSSIBLE

WRONG

JUDGEMENT

QUANTITATIVE

ASPECTS