UNDERSTANDING

FINANCIAL
STATEMENTS
HELEN JANE V.
LARGO
Secondary School Teacher
DepEd
What are
Financial Statements?

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 What Are Business
Activities?

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OBJECTIVES
OF
FINANCIAL
STATEMENTS
1. True & Fair view of financial position
2. True & fair view of financial performance
3. To provide information about resources
4. To provide Information about the earning potential
5. To form basis for decisions of the stakeholders
6. To report on the effectiveness and efficiency of the management
7. To increase the understandability of the end users.
8. Other Objectives

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USERS THAT DEMANDS
FINANCIAL
ACCOUNTING AND
THEIR NEEDS
 1. Owners

2. Customers
3. Suppliers
4. Managers
5. The Lenders
6. The Government and its agencies
7. The Financial Analyst and Advisors
8. The Employees
9. The Public

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Sources of
information about
sources enterprise

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 1. Primary information
2. Secondary information
3. Internal information
4. External information

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THANK
YOU!