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Questions
Short Answer Question
State the meaning of financial statements?
What are the financial statements?
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Solution 1
Financial statements of a company present a true and fair picture of the results of a company's operations to the various users of an accounting information. Financial Statements are the end products of the accounting process. These are the annual formal statements that are prepared by various enterprises or organisations for a particular accounting period.
Quoting the words of the American Institute of Certified Public Accountants (AICPA), "Financial statements are prepared for the purpose of presenting a periodical review or report on progress made by the management and deal with the status of investment in the business and the results achieved during the period under review."
Solution 2
Financial statements are the statements prepared by the business concerns at the end of the accounting period to ascertain the operating results and the financial position.
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