Get 1 ITEM 8 UNDERSTANDING FINANCIAL STATEMENTS It Is ... - Uky

Financial statements can be divided into four categories: balance sheets, income statements, cash flow statements, and equity statements.

The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, its revenues and costs, as well as its cash flows from operating, investing, and financing activities.

The 10 elements are: (1) assets, (2) liabilities, (3) equity, (4) investments by owners, (5) distributions to owners, (6) revenues, (7) expenses, (8) gains, (9) losses, and (10) comprehensive income. The 10 elements of financial statements defined in SFAC 6 describe financial position and periodic performance.

This chapter defines the five elements of financial statements—an asset, a liability, equity, income and expenses.

A financial statement consists of three parts: income statement, balance sheet and cash flow statement. The balance sheet summarises assets, liabilities and equity, while the income statement covers the revenues and expenses of the company over a given period.

In accounting, elements of financial statements are the individual sets of information that make up the financial statement. It helps in the presentation of the information that will be included in that particular financial statement. Elements of a balance sheet are assets, liabilities, and equity.

Financial statements are written records that illustrates the business activities and the financial performance of a company. In most cases they are audited to ensure accuracy for tax, financing, or investing purposes.

A financial statement is a report that shows the financial activities and performance of a business.