Accounting concerns all the financial information about a business entity. It is a way of communicating the entity`s financial information in a significant manner to internal and external parties of the business. Financial information includes assets, liabilities, income, and expenses. These information are recorded, classified and summarized to produce different reports.
Accounting reports are statements that shows the financial status of the company for a specific period. These reports can be prepared monthly, semi-annually or annually. The formal type of these reports are known as the financial statements which include the balance sheet, income statement, statement of retained earnings and statement of cash flows.
The Balance sheet is a report on the company`s assets, liabilities and equity as of a period of time. It is also known as the statement of financial position or condition.
The Income statement is a report on the company`s revenues, expenses and profits over a period of time. It is also known as the Profit and Loss statement.
The Statement of retained earnings is a report on the changes in the company`s retained earnings over a period of time. While the Statement of cash flows is a report on the company`s cash flow activities, particularly its operating, investing and financial activities.
In public accounting, particularly auditing, the most common types of report are unqualified or unmodified opinion, qualified opinion, adverse opinion and disclaimer of opinion.