This provides information on how to record financial statements like comprehensive income( income statement) , Changes in equity, balance sheet ( Statement of financial position) Check and follow me for more info on Financial accounting,
Unit 3: Introduction to Financial Statements
The different financial statements
In this module we will learn more about three financial sta
which are commonly used across all business combinations
The Statement of Comprehensive Income,
The Statement of Financial Position and
The Statement of Changes in Equity (refer to figure 3.1).
It is important to understand the difference between each
financial statement, their purpose and the correct for
prepare them.
, Unit 3: Introduction to Financial Statements
The different financial
statements
FINANCIAL
STATEMENTS
STATEMENT OF
FINANCIAL
POSITION
STATEMENT OF STATEMENT OF
COMPREHENSIVE CHANGES IN
INCOME EQUITY
, Unit 3: Introduction to Financial Statements
The statement of comprehensive income: purpose and importance to the
organisation
The purpose of the statement of comprehensive income is to calculate the
profit or loss for an organisation during a particular period.
This statement is generally prepared more than once per year.
Profit can be described as the difference between all receipts (income) and
expenses for a particular period. It is an important statement for
management since it can tell management a lot about how efficient the
business is operated.
However, organisations should not only focus on whether the business is
making profit but also on how it is generated.
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