A Financial statement are in written form that are used to maintain the day to day activities that help to generate result in profit and loss at the end of specified time period. These statements present the overall business financial position during a period. A business or organization prepares or maintain following financial statement like: income statement, balance sheet, or cash flow statement. These statement keeps the record like purchase during a certain year, sale of the organization, describe gross profit, maintain operating expenses along with income and result is net profit and loss, and balance sheet show the total liabilities and assets of the organization.
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