Q8. Financial statements
What are the financial statements prepared by an entity?
A8.
Financial statements include the following:
(1) Balance sheet
(2) Income statement
(3) Statement of cash flows
(4) Statement of changes in equity
[Note]
Entities may use different names for these financial statements.
Commonly used alternative names include:
(1) Balance sheet
= Statement of financial position
(2) Income statement
= Statement of income
= Statement of profit or loss
= Statement of earnings
= Statement of operations
(3) Statement of cash flows
= Cash flows statement
(4) Statement of changes in equity
= Statement of equity
= Statement of stockholders’ equity
= Statement of shareholder equity
= Statement of changes in stockholders’ equity
= Statement of changes in shareholder equity
(5) The term “profit or loss” is equivalent to the term “net income.” Both “profit or loss” and “net income” are calculated by subtracting expenses from revenues.
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