Meanings and Types of Financial statements.

1. Submitted by: Gandharva Krishna
Roll No.: 1913832
Course: PGDMM

2. Meaning
 Financial statements (or financial reports) are
formal records of the financial activities and position
of a business, person, or other entity.
 Relevant financial information is presented in a
structured manner and in a form which is easy to
understand.

3.  Financial Statements are reports prepared by
Company’s management to present the company’s
Financial Performance and Position.
 Financial Statement is a meticulous collection of
data organised according to logic and consistent
accounting procedures.

4.  It is the basic and formal annual report through
which a business communicates its financial
Information to various UsersGroups.

5. Users of Financial
Statements
 Management
 Investors
 Customers
 Competitors
 Government
 Employees
 Lenders
 Suppliers

7. Nature of Financial
Statements
 Recorded Facts
 Accounting Conventions
 Postulates (Assumptions)
 Personal Judgements

8. Objectives of Financial
Statements
 Relevent
 Reliable
 Understandable
 Comparable

9. Types of Financial
Statement
 Balance Sheet
 An Income Statement
 A Statement of changes in owner’s account
 A Statement of changes in financial Position
 Funds Flow Statement
 Cash Flow Statement