describe the roles of the key fi nancial statements (statement of fi nancial position, statementof comprehensive income, statement of changes in equity, and statement of cash fl ows) inevaluating a company’s performance and fi nancial position

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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describe the roles of the key fi nancial statements (statement of fi nancial position, statement
of comprehensive income, statement of changes in equity, and statement of cash fl ows) in
evaluating a company’s performance and fi nancial position

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Financial statements are said to be the basic statements which are used to evaluate the performance and financial position of the company which is necessary to determine the survival and growth aspects in the market. 

Financial statements consist of four major records;

  1. Income statement 
  2. Balance sheet 
  3. Cash flow statement 
  4. Notes to accounts

 

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