What are the four general purpose financial statements?
There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity.
What is not a general purpose financial statement?
More specific financial statements may also be released; these are not considered to be general purpose. For example, the management team may want to see detailed departmental expense reports, while a condensed version of the income statement may be acceptable for credit reviews by suppliers.
What are the three general purpose financial statements?
The balance sheet, income statement, and cash flow statement each offer unique details with information that is all interconnected. Together the three statements give a comprehensive portrayal of the company’s operating activities.
What is the main purpose of general purpose financial statements?
The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization. This information is used by the readers of financial statements to make decisions regarding the allocation of resources.
