CHAPTER 3: INTRODUCING FINANCIAL STATEMENTS.

Since I study Principle of Accounting, I have learn about some Financial Statements.The financial statements are part of the annual report that usually comprise a balance sheet, income statement, statement of changes in equity and a cash flow statement.

I realized I need to remember elements that will appear in each report.
Balance sheet have Asset account, Liability account and Equity account.

Income statement just only have Revenue and Expense account

Why we do not combine all in 1 report?

Moreover, Balance sheet is divided into 2 sets: The balance sheet of a group of companies and the balance sheet of the parent company by itself.

Secondly, there is a Income statement, A firm’s income statement shows how things are changing in a firm over a period of time, usually one year
In my company's annual report about income statement, I am very confuse why the data for 2013 in the report of 2013 and 2014 are different? I thought it need to be the same. What change the data?
Which data I will use to put in the Income statement?

The third report that I have done for my Annual reports is statement of change in equity.t. It shows opening equity; the profit (or loss) for the period ;other comprehensive income and payments or transfers between your firm and its equity investors, such as dividends or share issues.

The value of anything, Price is what you pay and value is what you get. In the market, most customers  will buy more when the price is lower. I usually do that too even though I do not need it.

This chapter is so clear about balance sheet and Income statement, It also remind me the equation of accounting that is very important for my study.