With the aid of financial statement, the management of company can ensure the standing and performance of monetary accounts. Beyond doubt, a financial statement is given that a small piece of information with respect to the fiscal values of company. Almost unquestionably, a financial statement will uniformly facilitate the investors and creditors to appraise a company’s financial performance. Separately of this, a financial statement can also sustain the business to converse with other entities or all the interested outside parties who willing to know the current financial values of company maybe for the sake of investment. In broad-spectrum scenario, there’re dissimilar type of financial statement templates which completely focus on various areas of financial performances. Some statements used for operating results of company, some for financial conditions, some for cash flow, & others for shareholder’s equity.
Any statement which is arranged to testimony some type of monetary data is known as financial statement. It is an uncomplicated petty cash statement, an expense statement, a balance sheet or an income statement. The financial statements which are equipped on yearly basis consist of income statement, profit and loss statement and statement of retained earnings. A financial statement will comprise on monetary data for illustration; in income statement, it will portray the net income of the business for a particular period of time. Moreover, if it is a statement of retained earnings, it will advise how much profit is earned which will additional be used in drawing various conclusions about business.