In FINANCIAL STATEMENTS ◆ Tags #The Purpose of Financial Statements ◆ Published 2020-03-17

Financial statements are made up of four major areas – balance sheets, income statements, money flow statements and also preserved earnings. Each declaration is part of the structure for financial statements. Each area of a financial statement has a purpose and offers certain info concerning a firm’s financial security. This framework is called the Generally Accepted Accounting Practices, or GAAP. Each area of a financial statement has a purpose and provides specific information about a company’s financial stability.