Companies prepare four financial statements from the summarized accounting data:
1.Income Statement : The income statement reports the revenues and expenses for a specific period of time. The income statement lists revenues first,followed by expenses.Finally the statement shows net income or net lose.Net income results when revenues exceed expenses.A net loss occurs when expenses exceed revenues.
2.Owners Equity Statement: The owners equity statements reports the changes in owners equity for a specific period of time.
3.Balance Sheet: The balance sheet is a snapshot of the companies condition at a specific moment in time. By this statement people can know about companies assets and liabilities.
4.Statement of Cash Flows: The statement of cash flows provides information on the cash receipts and payments for a specific period of time.