After transcastion are identified, recorded, and summarized , four financial statements are prepared from the summarized accounting data:
1. An income statement presents the revenue and expenses and resulting net income or net loss for a spesific period of time.
2. An owners equity statement summarized the changes in owners equity for a spesific periods of time.
3. A balance sheet reports the assets , liabilities , and owners equity at a spesific date.
4. A Statement of cash flows summarized information about the cash inflows (receipts) and outflows (payments) for a spesific period of time .
Each statement provides managements , owners and other interested parties with relevant financial data.
(Accounting principles 7th editions : kimmel, kieso, weygandt)