the information includes aspects of the balance sheet, income or profit and loss statements,
and cash flow statement. financial information is a more essential
component of business and as the principal method of
communicating financial information about an entity to outside parties. financial statements report the financial position
or financial status of a business or an individual as well as financial
changes at a particular time or during a period of time. The basic purpose
of financial statements is to communicate to external and internal parties
information about financial decisions that have been made.