What is the purpose of financial statements?

Answer

There are two main purposes of financial statements:

(1) To report on the financial position of an entity (e.g. a business, an organisation);

(2) To show how the entity has performed (financially) over a particularly period of time (an "accounting period").

The most common measurement of "performance" is profit.

It is important to understand that financial statements can be historical or relate to the future.

All accountant Questions

Ask your interview questions on accountant

Write Your comment or Questions if you want the answers on accountant from accountant Experts
Name* :
Email Id* :
Mob no* :
Question
Or
Comment* :
 





Disclimer: PCDS.CO.IN not responsible for any content, information, data or any feature of website. If you are using this website then its your own responsibility to understand the content of the website

--------- Tutorials ---