A business enterprise normally prepares the following two financial statements
- Profit or loss or income statement which helps to find out the profit or loss made as result of operations of the company over a specified period.
- Balance sheet or financial position statement which reflects the state of asset and liabilities of company on a particular period.
Another required financial statement is cash flow statement. This is requirement of International Accounting 7 (IAS 7)
(Visited 51 times, 1 visits today)