5 elements of financial statements you need to know

Financial statements are usually prepared to report the stewardship position to the owners of the business entity who contributed their wealth (in the form of equity capital) to operate the business. At the end a financial year, a stewardship report is prepared to show
i. The financial position of the business entity
ii. The statement of profit or loss for the business in the reporting period
iii. Statement of changes in the cash position. This is the statement of cash flow.
Now, the elements that make up the financial statements are
1. Assets
2. Liabilities
3. Equity
4. Expenses
5. Income