Purpose of Financial StatementsFinancial result: It refers to the outcome (profit or loss) of all transactions that occurred during the accounting year. To know the financial result, an organization prepares Trading and Profit and Loss account. So, it is called an income statement.
Financial position: It refers to the position of assets and liabilities as on a particular date. To know the financial position, the organization prepares Balance Sheet, Cash flow statement, etc. So, it is called a position statement.