CHAPTER ONE
1.0 Introduction
The financial statements viz. income statement and balance sheet report what has actually happened to earning during a specified period and presents a summary of financial position of the company at a given point in time. The statement of retained earnings reconciles income earned during the year and any dividends distributed with the change in retained earnings between the start and end of the financial year under study. The statement of changes in financial position provides a summary of funds flow during the period of financial statements.
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