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Types of Financial Statements

·         Income statement: Income statement is a type of report that is given to the organization which uncovers all the financial transactions/performance of the organization throughout the reporting period. It gives you all the data related to the sales and also provides you with the net profit or loss depending upon the overall performance. It provides financial progress over time.

·         Balance sheet: Balance sheet is a report that presents the budget od an organization and is also very helpful in organizing the business sales area. These provided reports also reflect the status of the organization’s all the assets, equity and the liability. Balance sheet indicated these following elements.

                        Assets= Liabilities + Equity

·         Cash flow statement: A cash flow statement is also known as the statement of the cash flow. Cash flow statement shows how the change in the balance sheet affects cash and equity of the cash. Its complete analysis is broken into the financing, operating and investing activities.

·         Statement of change in equity: The statement of change in equity is very similar to the statement of the changes in owner’s equity for the trade. The statement shows the change in the company’s accumulated reserves, share capital and retained earnings over the period of the time. The statement explains the owner’s equity as follows.

Owner’s equity = assets – liabilities

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