abhishreshthaa
Abhijeet S
Financial statements include the Profit and Loss Account or Income and Expenditure Account and the Balance Sheet. These statements are prepared to show the results of operations during a period (usually a year) through the profit and loss account and the financial position as at the end of that period through the Balance Sheet.
The financial statements are summarized accounts of the transactions of the organization for and at the end of a particular period. It is like the snap-shot photo of the business.
It shows the success or failure of the business indicating effectiveness or efficiency of management i.e. to what extent the management is successful and what its failures are during the period.
The financial statements reveal the progress or deterioration of the business in the period under the present management. In other words, it enables one to evaluate the performance of the management. The evaluation is made by different parties from different angles.
That means the financial statements are of interest to various parties who analyse them from their own angle.
The financial statements are summarized accounts of the transactions of the organization for and at the end of a particular period. It is like the snap-shot photo of the business.
It shows the success or failure of the business indicating effectiveness or efficiency of management i.e. to what extent the management is successful and what its failures are during the period.
The financial statements reveal the progress or deterioration of the business in the period under the present management. In other words, it enables one to evaluate the performance of the management. The evaluation is made by different parties from different angles.
That means the financial statements are of interest to various parties who analyse them from their own angle.