Importance of Financial StatementsThe information contained in the financial statements is very useful for management, especially for taking financial decisions. It also helps the outsiders, such as lenders, short-term creditors, employees, customers, present and potential investors, Government and their agencies (stake holders) to satisfy some of their different needs for information. They get a better insight about the financial strengths and weaknesses of the organisations.
Financial Statements Include
- Trading and Profit and Loss Account
- Balance Sheet abstract
- Notes to accounts
- Cash flow statements