Five (5) components of set of financial statements.

Financial statement are report prepared by management of the entity to provide information to owners of the entity and other users about the financial position and financial performance of the entity.

The following are components of set of financial statements:

  • statement of financial position;
  • statement of comprehensive income;
  • statement of changes in equity;
  • statements
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5 disadvantages of consolidated financial statements

5 disadvantages of consolidated financial statements.

Consolidated financial statements are the “Financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent (company) and its subsidiaries are presented as those of a single economic entity”.

The following are shortcomings of consolidated financial statements:

Unprofitable companies are set off against

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Revision question on preparation of forecasted income statement and statement of financial position.

You have been approached by a recently established business enterprise. This business is seeking financial accommodation from its bankers who are prepared to provide overdraft facilities. Before final approval can be given, the figure maximum overdraft is required and the time in the year when this well arise. The forecast cash balance at the end of the first period of … Read the rest