Income Tax Expert Interview Question:

Explain me what are the two most basics financial statements prepared by the companies?

Submitted by: Muhammad

Financial statements are prepared in two forms:

Balance Sheet is a position statement as it refers to a particular date. It is also referred to as Statement of Sources and Application of Funds. It informs about the various sources used by the organization which are technically known as liabilities to raise the funds which are referred as assets.

Profitability Statement also known as Profit and Loss Account. It is a period statement as it refers to a particular period.
Submitted by: Muhammad