Financial Statements Flashcards
1
Q
Define Financial Statement
A
Financial statements are written records that convey the business activities and the financial performance of a company.
2
Q
What does the financial statement include?
A
1) Trading and profit and loss account
2) The statement of financial position
3
Q
What does the trading and profit and loss account indicates?
A
The gross and net profits or losses made during the period
4
Q
What does the statement of financial position indicates?
A
The financial position of the business at a particular point in time
5
Q
What is the trading and profit and loss account?
A
Income Statement
6
Q
What is the statement of financial position?
A
Balance Sheet
