Financial statements are the statements, which summarize the information of financial matter
Regarding operating result and financial position of an business firm. It includes income
Statement (Trading account, profit and loss account) and balance sheet. Its features are as
Follows:
a. Financial statements are based upon historical fact, event, data or records.
b. Financial statements include monetary transactions and prepared generally at the end of accounting period.
c. Financial statements may not fulfill the requirement of all the parties of the business firm.
