Page 199 - F1 - AB Integrated Workbook STUDENT 2018-19

Accounting and finance functions within business

The financial accounting function

2.1 Financial accounting

Financial accounting is concerned with the production of annual
financial statements in accordance with the relevant accounting
standards and leislation.

There are three main financial statements produced by most businesses each year.
These are:

Statement of profit or loss
 details the income as
well as the costs
incurred in the period.

Financial
statements

Statement of financial
position
 shows the assets Statement of cash
and liabilities of the flows

business at the year
end  summarises the
cash receipts and
 also shows capital
payments for the
that the owners of year.
the businesses
have in the
organisation.

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