Footnotes to the financial statements refer to additional information provided in a company’s financial statements. Financial statements footnotes describe the items that are left out of the balance sheet and income statement and have a significant impact on the companies profitability and operations.
Financial statements are integrated information of recorded events, accounting conventions and individual judgment capacity.
Income Statement shows net profit or net loss arising out of activities of a particular accounting period of any business organization. Income statements are 2 types, Single-step income statement and Multiple-step income statement for finding net profit or loss an accounting period.
Balance sheet in Accounting Process are two types and they are 1. Unclassified balance sheet and 2. Classified Balance Sheet.
Prepare financial statements from a worksheet is relatively easy because all necessary accounting information is properly presented and structured in the worksheet.