What are Financial Statements In Accounting

Financial Statements show financial information of Monetary or Business Transactions  of the business occurred and recorded in the Books of Accounts during the accounting period. Financial Statements are prepared at the end of accounting period and these are reported to the Users of Financial Statements. These include Income Statement or Statement of Comprehensive Income, Balance Sheet or Statement of Financial Position, Statement of Cash Flows, Statement of Retained Earnings and Statement of Changes In Equity. These Statements show financial performance, financial position, movement of cash flows, changes in equity over period of time, profitable activities of the management and shareholders for the accounting period.

All of the (five) 5 types of Financial Statements are included in the Financial Reports that are reported Quarterly, Semi-Annually or Annually to the users of financial information.