In contrast to accounting, which classifies and summarises financial data to aid managers in decision-making, recording is used to keep track of commercial activities.
Financial statements describe a company's operations as well as its financial success. Government organizations, accounting firms, and other entities frequently audit financial statements to assure their accuracy and for reasons related to taxes, financing, or investment. The balance sheet, income statement, cash flow statement, and statement of changes in equity are the four basic financial statements used by for-profit organizations. Nonprofit organizations employ a comparable but distinct set of financial statements. The statement is used by analysts and investors to assess a company's performance and forecast the course of its stock price in the future. The company's annual report is among the significant sources of trustworthy and audited financial data.
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