FINANCIAL REPORTING is the process of giving an account of the effects of every financial event that made an impact on the business. Ahhh... too abstract! Let me simplify this:
FINANCIAL REPORTING is the process of giving an account of the effects of each financial event, that are summarized as balances of accounts.
These balances are grouped into three major financial statements:
1. CASH FLOW STATEMENT
This is the financial report that will tell you where cash came from and how the business used the same in a given period, in the process of conducting operating, investing and financing activities.
2. INCOME STATEMENT
Also known as the STATEMENT OF PROFIT/(LOSS), this one will help you know of the revenues, gains, expenses and losses of the business during a certain period.
3. BALANCE SHEET
Its other name is the STATEMENT OF FINANCIAL CONDITION. It lists down all the business' assets, liabilities, and equity.
FINANCIAL REPORTING is the process of giving an account of the effects of each financial event, that are summarized as balances of accounts.
These balances are grouped into three major financial statements:
1. CASH FLOW STATEMENT
This is the financial report that will tell you where cash came from and how the business used the same in a given period, in the process of conducting operating, investing and financing activities.
2. INCOME STATEMENT
Also known as the STATEMENT OF PROFIT/(LOSS), this one will help you know of the revenues, gains, expenses and losses of the business during a certain period.
3. BALANCE SHEET
Its other name is the STATEMENT OF FINANCIAL CONDITION. It lists down all the business' assets, liabilities, and equity.
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