Question

What are the four statements that contained in most annual reports? Define each one of them

PLease need a unique answer with proper finance terminology. THank you!

Answer 1

Four types of statement which are contained in most annual reports are as follows-

A. Income statement- income statement will be reflecting all the revenues and the expenses which are generated by the company within a specific period and it will be recording the profit and loss which has been generated from the operations of the company in a particular year, hence it will be reflecting the ability of the company to generate the profit in a particular period on operational front.

B. Balance sheet- Balance sheet will be reflecting the the Assets and liabilities which will be owned by the company at a particular period and it will also reflect the strength and the weakness of the company in relation to the Assets and liabilities which has been held. Balance sheet will be depicting the current assets as well as current liabilities and it will also reflect fixed asset and long-term liabilities so it will be a proper combination of all the benefits which can accrue to the company in the longer period.

C. Statement of cash flows- statement of cash flows will be reflecting change in the cash flows of company within a particular period of time and it will be including the cash flows from operation along with cash flows from investing activities and cash flows from financial activities so it will be a complete reflection of the liquidity position of the company.

D. Statement of change in equity- Statement of changes in equity will be reflecting the changes in the equity shareholders status of the company and it will include all such transactions which will be affecting the Reserve and surplus and equity share holding pattern of company.