Question

WRITE A RESPONSE TO THE FOLLOWING WHETHER YOU AGREE OR NOT

After reading many articles regarding the differences between financial statements, and financial reports I found two website that offered good explanations for me. bizfluent.com stated, "Financial Statements are short documents that present the income information for a business at any given point in time. A Financial Statement does not include information about expenses, or purchases.” pakaccounts.com noted,"Financial Statements can include: Statement of Financial Positions, Statement of Comprehensive Income, Statement of Cash Flow, Statement of Changes in Equity.” These statements can be given several times a year. Bizfluent.com say," Financial Reporting is a large collective document that summarized the financial spending & earning of a given business over the duration of a single year. It can combine both the earning of the income statements, provides an overlook of the net worth, and shows the business spending and expenses in great detail. It provides a personal letter from the CEO, or owner along with short predictions chapter that presents , and directs plans to increase profits, or increasing the net worth.” I believe financial statements give a piece of the financial picture, or portfolio while the financial report shows the entire picture.

Answer 1

Here the differences between the financial statements and financial reports

Tha explanation given by the pakaccounts.com is a bit better compared to other

Financial statements.

1. These include statements of income , balance sheet, changes of equity, statement of cash flow.

2. These are regularly prepared for a certain time .

3. These statements are useful to know the financial position to investors .

Financial reports.

1. These reports does not have a particular formats and names

2. These provide whatever information needed by the user of company .

3. It gives more depth information about the financial stability of the company and also make till the depth of the net worth of the company.

4. It can be prepared at a particular time and about a particular aspect like loans, capital, investments.

5. Mostly these reports are used by the lendors of the companies to sanction loans luke banks, non -banking financial companies.

All the above points are about the financial statements and financial reports.

I hope, all the above given points are useful to you.

Thank you.