Question

Financial statement includes only balance sheet.

Options

• Agree

• Disagree

Answer 1

I Disagree with the given statement.

Explanation:

A financial statement includes not only the balance sheet but also the trading account, profit and loss account, and cash flow statement. The balance sheet shows the financial position, while the profit and loss account reflects the profitability of the business. Hence, financial statements provide a complete view of a firm's financial performance and position.