What are Financial Statement?

The accounting data that were gathered and stored in the books of accounts when transformed into a report form, these become "financial statements". Financial statements, therefore, are the "end products" of the accounting process. It provides information about the financial position, performance and cash flows of an enterprise which is vital in making a second economic decision. These financial statements can serve its purpose if prepared and communicated on time. There are five (5) basic financial statements, namely: Balance Sheet, Income Statements, Statement of Changes in Equity, Statement of Cash Flows and Accounting Policies and Notes to Financial Statements.