Financial statements are a record of the financial activities of a business, person, or other entity, presenting relevant financial information in a structured and easy to understand format. The main types of financial statements are the balance sheet, income statement, and statement of cash flows, which provide information on liquidity, profitability, and efficiency. However, financial statements also have disadvantages as they can mislead users, lack usefulness for planning, make comparisons difficult, lead to wrong judgments, and only show quantitative aspects.

1. FINANCIAL STATEMENTS
Management accounting
12-102
AMANPREET KAUR

2. 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.

3. TYPES OF BALANCE SHEET
BALANCE SHEET
INCOME
STATEMENT
STATEMENT OF
CASH FLOW

4. BALANCE SHEET

5. INCOME STATEMENT

6. CASH FLOW

7. FUND FLOW
 STATEMENT OF WORKING CAPITAL CHANGE
 STATEMENTS OF FUNDS FROM OPERATIONS
 STATEMENT OF SOURCES AND APPLICATION
OF FUNDS

8. ADVANTAGES OF FINANCIAL STATEMENTS
LIQUIDITY
PROFITABILITY EFFICIENCY
LIMITS

9. DISADVANTAGES OF FINANCIAL
STATEMENTS
MISLEAD THE
USERS
NOT USEFUL FOR
PLANNING
COMPARISION
NOT POSSIBLE
WRONG
JUDGEMENT
QUANTITATIVE
ASPECTS