ECONOMICS

Detailed explanation-1: -The answer is True. Financial Statements consists of Statement of Financial Positions ("Balance Sheet"), Statements of Comprehensive Income ("Income Statement"), Statement of Cash Flows, Statement of Stockholders Equity and Notes to Financial Statements. These reports are all part of Financial Reports.

Detailed explanation-2: -Format of statement Assets can be presented current then non-current, or vice versa, and liabilities and equity can be presented current then non-current then equity, or vice versa. A net asset presentation (assets minus liabilities) is allowed.

Detailed explanation-3: -Your income statement reports the income and expenses for a specific period of time (i.e. a month, a quarter, or a year), whereas the balance sheet lists your company’s assets and liabilities at a specific date.

Detailed explanation-4: -Key Takeaways Financial statements must be prepared at the end of the company’s tax year, but some companies update them as frequently as each month.