What Are the Key Components of Financial Reporting?
Financial reporting consists of several key components:
Balance Sheet: This document provides a snapshot of the company’s assets, liabilities, and shareholders' equity at a specific point in time. Income Statement: Also known as the profit and loss statement, it shows the company’s revenues and expenses over a reporting period. Cash Flow Statement: This statement provides insights into the company’s cash inflows and outflows, showing how cash is generated and used in operations, investing, and financing activities. Statement of Changes in Equity: This statement shows the changes in the company’s equity during a reporting period.