Questions On Financial Statement Of Financial Performance And Liquidity Of The Company
A financial statement is a formal record of all financial activities in a firm and helps to state the financial position of a business, person or a registered entity. These reports quantify the financial strength, performance and liquidity of the company in the picture.
There are four types of financial statements. We have the statement of financial position generally referred to as a balance sheet. This financial statement records the company’s assets, liabilities and owners’ equity or capital. The statement of financial position presents the financial position of a firm at a given date. An income statement is also another type of a financial statement normally referred to as a profit and loss account. This statement records a company’s financial performance in terms of net profit or loss over a specified period of time. Also, there is the cash flow statement which shows the movement in cash and bank balances over a given period of time at last, we have the statement of change in equity also known as statement of retained earnings. This shows the movement in…