What are the Functions of Financial Statements?

[Suba]

Financial reports are reports that present financial data/information of a business or company during a certain period. There are several types of financial statements that we are familiar with, such as income statement, balance sheet, cash flow, retained earnings, etc. This financial statement will be very useful for business owners, investors, banks and tax offices, employees, etc. So what are the functions of financial statements?

 

[eLdavis]

It can also be used as a line of defense. In a situation where you are accused of accepting bribes of certain amount and the likes, you can easily defend yourself with your bank statement.

 

[Stardom22]

For me l really don't find any good reasons for one asking your financial statement. Otherwise most lending companies ask for it before giving out loans.

 

[Kross]

Financial statements help you to track the inflow and outflow of funds to your business. It can even be electronic.

 

[Springtime]

Financial statements give you a clear picture of the financial status of your business. Whether you are making profit or loss, your cash flow situation and the value of your business.

 

[Starmix]

A financial statement guarantees the auditors that the income statements stipulated in it are accurate for it's handled by a skilled accountant.

 

[Fidelia]

Financial statements allows you to know the financial position of your business or personal finance in details.