What are the difference in financial statements?

Question

Identify differences in financial statements across forms of business organization.

Answer 1

In the simple terms,

Balance sheet is a picture of what are your assets and liabilities and equity at a certain date.

Income statement is what income and related expenses you have during a period of time, say from January 1 to date or the whole year. Usually not longer than a year.

Statement of cash flows, speaks for itself basically what did you use your money for during the period related to the balance sheet and the income statement.

And the old statement of changes in financial position which is supposed no longer used is similar to the statement of Cash flows.

Good luck