Financial statement is the final accounting process. Accounting is called the language of business because it is a means to deliver financial information to parties who need it. The better we understand the language, the better our decisions, and the better we are in managing finances. To convey this information, the accounting report is used or what is known as financial statements. The financial statements of a company usually consists of four types of statements, ie balance sheet, income statement, statement of changes in equity,and cash flows.
• Balance sheet, is a systematic list of assets, debt and equity on a certain date, which is usually made at the end of the year. Called as a systematic list, because the balance sheet prepared on a particular sequence. In the balance can be known how many property companies, the company's ability to pay liabilities, and the company's ability to obtain additional loans from outside parties. It also can be obtained information about the company's total debt to creditors and the amount of investment is in the owner company.
• The income statement, a summary of revenues and expenses of an enterprise for a certain period, so it can profits and losses are experienced.
• Report changes in capital, is a report that shows the change in capital for a certain period, maybe one month or one year. Through the statement of changes in capital can know the causes of changes in equity during a specific period.
• statements of cash flows, given this report the financial statement users to evaluate changes in net assets, financial structure (including liquidity and solvency) and the company's ability to generate cash in the future
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