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Financial Statements Accounting Concepts
The main purpose of statement financial accounting concept is to provide a general overview of the accounting concepts, ideas and definition. It is a statements detail about the accounting standard and guidelines on accounting policies which is set by financial accounting standard board (FASB). These standards are created to ensure a high level of corporate transparency. These statements are used as a blueprint for the future development of reporting procedures and policies.
These are the typically included basic financial statements they are
• Balance sheet also known as a statement of financial position of the entity.
• A cash flow statement which is a report of the company’s cash flow activities, financing and investing activities.
• An income statement also called as a statement of revenue and expenses, it also guides about profit and loss reports.
• An equity statement reports which shows the changes in equity of the company during the stated period.
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