Explain different methods used for management accounting reporting.
Financial statements(orfinancial reports) are formal records of the financial activities and position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form which is easy to understand. They typically include four basic financial statements accompanied by a:
(Notably, a balance sheet represents asingle point in time, where the income statement, the statement of changes in equity, and the cash flow statement each represent activities over a statedperiod.)
For large corporations, these statements may be complex and may include an extensive set offootnotes to the financial statementsandmanagement discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.