Types of financial statements

Question 1

What is a statement of profit loss and other comprehensive income?

Answer 1

This is also known as your income statement

This takes your revenue and deduct your cost of sales to give you your gross profit

Distribution costs and admin expenses to give you your profit from operations

Then takes income from investments and finance costs to give you your profit before tax

Then your income tax expense to give you your profit for the period

Then takes other comprehensive income, which is income and expensive that are recorded in reserves rather than the element of profit for the period. Provide your total comprehensive income.

Question 2

What is a statement of changes in equity?

Answer 2

This takes your share capital,share premium, revaluation reserve and retained earnings balances as at the start of the period and looks at revaluations, profit or loss, dividends and issues of share capital to give you your closing balances

Question 3

What is your statement of financial position?

Answer 3

This is your Balance sheet

It takes all of your assets and deduct equity liabilities to give totals.

Your total assets and your total equity and liabilities should equal / Balance.

Question 4

What is a statement of cash flows?

Answer 4

This looks at cash flows from operating activities, investing activities and financing activities. It then shows you your opening and closing balances of cash and cash equivalence and the increase of decrease in the period.