COMPONENTS OF FINANCIAL STATEMENT
In this article we will get to know the components that make up a financial statement. What is financial statement? Financial statements are report that summarizes important financial decision of your business. There are three main components of financial statement: 1. Balance Sheet 2. Income statement 3. Cash Flow statement Balance Sheet: It’s a snap shot of your business as it currently stands. It tells about the assets and liabilities. It is broken down into three categories: Asset, Liabilities and Equity. Asset can be broken down into current asset and fixed asset. Liabilities are debt you owe other people. Equity is the remaining value of the company after subtracting the liability from the assets. Income Statement: It tells you how much money a company have spent and how much profit it has made for a specific period Cash Flow Statement: This is how much enters and left you...