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What are Notes to Financial Statements and their Purpose?
What are notes to financial statements and what is their purpose? The financial statements tell us about the important financial information of a certain business or entity which also help us make more informed judgments, such as whether we should infuse more capital or not to … [Read more...]
What is a Statement of Changes in Equity and its Purpose?
What is a statement of changes in equity and what is its purpose? A statement of changes in equity is a separate component of financial statements. It presents an entity’s total comprehensive income for the period (profit or loss plus other comprehensive income for the period), … [Read more...]
What is a Cash Flow Statement in Business?
What is a cash flow statement and what is it for? The statement of cash flow, together with the balance sheet (statement of financial position), statement of comprehensive income (income statement), statement of changes in equity, and accompanying explanatory notes to financial … [Read more...]
What is a Statement Comprehensive Income?
What is a statement of comprehensive income? The statement of comprehensive income is one of the components of a complete set of financial statements, along with the statement of financial position (balance sheet), statement of cash flows, statement of changes in equity, and … [Read more...]
What is a Balance Sheet or Statement of Financial Position?
What is a balance sheet or a statement of financial position? Among the five components of a complete set of financial statements (i.e., balance sheet, statement of comprehensive income (income statement), statement of cash flow, statement of changes in equity and notes to … [Read more...]
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