financial statements is composed of?

Financial statements are composed of the following key components:

1. Balance Sheet: This statement provides a snapshot of a company's financial position at a specific point in time. It includes assets (what the company owns), liabilities (what the company owes), and shareholders' equity (the difference between assets and liabilities).

2. Income Statement: This statement shows the company's revenues and expenses during a particular period. It starts with the sales revenue, from which the costs of sales are subtracted to get the gross profit. Then, all other expenses are subtracted to get the net income.

3. Cash Flow Statement: This statement shows the inflow and outflow of cash within a company during a specific period. It is divided into three parts: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

4. Statement of Changes in Equity: This statement shows all changes in the company's equity during the reporting period. It includes new equity investments, dividends, gains or losses recognized in other comprehensive income, and the effect of any changes in accounting policies.

5. Notes to the Financial Statements: These are additional notes and information added to the end of the financial statements to provide more detailed information about certain items in the financial statements. They are considered an integral part of the financial statements.