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Financial Statements Meaning: Financial statements are the systematically organized summary of all ledger accounts presented in a manner help gives detailed information about the financial position and the performance of the enterprise. The financial position of the enterprise is judged from the balance sheet and the financial performance from the income statement. The elements of financial statements comprise of: Balance Sheet Statement of changes in Equity Cash flow Statement Notes Objective: The purpose of preparing the financial statements is to give information about the financial financial, financial performance and cash flows financial an enterprise to the users for taking economic decisions.

The prominent users of financial statements include the homework of the company, shareholders, security analysts and investors, lenders, suppliers and creditors, customers, employees and government and regulatory agencies.

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