what is the purpose of financial statements and what encloses in f.s and what is purpose of trial balances

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Financial statements provide a snapshot of a company's financial health, including assets, liabilities, and equity. Trial balances ensure accuracy of financial records.

Financial statements serve to provide stakeholders with an overview of a company's financial performance and position.
Components of financial statements include balance sheet, income statement, cash flow statement, and statement of changes in equity.
Balance sheet shows assets, liabilities, and equity at a specific point in time.
Income statement details revenues, expenses, and profits over a period.
Cash flow statement outlines cash inflows and outflows.
Statement of changes in equity tracks changes in shareholders' equity.
Trial balances are used to ensure that debits equal credits in the accounting records.
They help in identifying errors and ensuring accuracy before preparing financial statements.

what is the purpose of financial statements and what encloses in f.s and what is purpose of trial balances

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