... financial position; it shows a balance between the accounts assets and liabilities. Profit and loss account is a portion of company's financial statements that summarizes revenues and expenses during a specific period of time. Cash flow is the pattern of income and expenditures of a company and the resulting availability of cash. The financial statements should be produced in such a way that they reveal all the information and fulfil the objective of the users. To meet their basic objective the financial statements should be useful and the information published should be relevant and reliable. Relevance and reliability are the primary characteristics to the presentation of these reports. There are different types of economic entities who prepare these statements. It is shown in the diagram below Different Types of Economic Entities Who Prepares Financial Statements The main responsibility of all these entities is to give general information to all users who are outside ...

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