{"id":70,"date":"2024-07-19T10:03:00","date_gmt":"2024-07-19T09:03:00","guid":{"rendered":""},"modified":"2025-06-30T12:56:43","modified_gmt":"2025-06-30T11:56:43","slug":"what-are-the-financial-statements","status":"publish","type":"post","link":"https:\/\/www.thetrainingplace.org\/blog\/2024\/07\/what-are-the-financial-statements\/","title":{"rendered":"What are the financial statements?"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><b><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt; line-height: 107%;\">WHAT ARE THE FINANCIAL STATEMENTS IN ACCOUNTS?<\/span><\/b><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Transcending from the trial balance, the financial statements will need to be prepared using the closing balances derived from the trial balance. The two main financial statements are the:<\/span><\/p>\n<p style=\"margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;\"><span style=\"mso-list: Ignore;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/span><b style=\"mso-bidi-font-weight: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of profit or loss (profit or loss account)<\/span><\/b><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\"> <i style=\"mso-bidi-font-style: normal;\">and the<\/i><br \/>\n<\/span><\/p>\n<p style=\"margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;\"><span style=\"mso-list: Ignore;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/span><b style=\"mso-bidi-font-weight: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of financial position (balance sheet)<\/span><\/b><\/p>\n<p style=\"margin-left: 18.0pt;\"><i style=\"mso-bidi-font-style: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Then there are also the following financial statements prepared by large companies:<\/span><\/i><\/p>\n<p style=\"margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;\"><span style=\"mso-list: Ignore;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/span><b style=\"mso-bidi-font-weight: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of cash flows<\/span><\/b><\/p>\n<p style=\"margin-left: 36.0pt; mso-list: l0 level1 lfo1; text-indent: -18.0pt;\"><!-- [if !supportLists]--><span style=\"font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;\"><span style=\"mso-list: Ignore;\">\u00b7<span style=\"font: 7.0pt 'Times New Roman';\"> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/span><b style=\"mso-bidi-font-weight: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of change in equity<\/span><\/b><\/p>\n<p><b style=\"mso-bidi-font-weight: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of profit or loss <\/span><\/b><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt; line-height: 107%;\">This is a financial statement which summarises the total income and the total expenses in a business over a period of time and it reflects whether the business made a profit or a loss for that period.<\/span><\/p>\n<p><b style=\"mso-bidi-font-weight: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of financial position<br \/>\n<\/span><\/b><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">This is a financial statement which summarises all the assets and liabilities of a business as at the end of an accounting period. It represents the financial position of the business shown in terms of the assets owned by the business and the liabilities owed by the business as at the end of a set accounting period.<\/span><\/p>\n<p><b><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of cash flows<\/span><\/b><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">This is a financial statement which summarises the movement of money in and out of a business over a period of time showing what the business has received money for and what the business has spent money on. It shows the amount of money maintained by the business at the beginning and at the end of an accounting period.<\/span><\/p>\n<p><b><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Statement of change in equity<\/span><\/b><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt; line-height: 107%;\">This is a financial statement which summarises the changes in the capital and reserves which are attributable to the shareholders. It shows the amount of equity maintained by the business at the beginning and at<br \/>\nthe end of an accounting period and the movements which would have taken place during the year, including dividends distribution.<b><\/b><\/span><\/p>\n\n\n<p><a href=\"https:\/\/www.thetrainingplace.org\/aat-level-3\">AAT Level 3 | The Training Place<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; WHAT ARE THE FINANCIAL STATEMENTS IN ACCOUNTS? Transcending from the trial balance, the financial statements will need to be prepared using the closing balances derived from the trial balance. The two main financial statements are the: \u00b7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Statement of profit or loss (profit or loss account) and the \u00b7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Statement of financial position (balance &#8230; <a class=\"read-more\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2024\/07\/what-are-the-financial-statements\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,29,22],"tags":[],"class_list":["post-70","post","type-post","status-publish","format-standard","hentry","category-aat","category-financial-accounting-preparing-financial-statements","category-level-3"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What are the financial statements? - The Training Place Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2024\/07\/what-are-the-financial-statements\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are the financial statements? - The Training Place Blog\" \/>\n<meta property=\"og:description\" content=\"&nbsp; WHAT ARE THE FINANCIAL STATEMENTS IN ACCOUNTS? Transcending from the trial balance, the financial statements will need to be prepared using the closing balances derived from the trial balance. The two main financial statements are the: \u00b7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Statement of profit or loss (profit or loss account) and the \u00b7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Statement of financial position (balance ... 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