Which of the following statement is False?

Financial statement do not include Cash Flow Statement.

The correct answer is Option (4) → Financial statement do not include Cash Flow Statement.

* Statement of profit and loss shows the operating performance of an enterprise for a period of time: This statement is true. The Statement of Profit and Loss (also known as the Income Statement) provides a summary of the revenues, costs, and expenses incurred by a business during a specific period, typically a fiscal quarter or year. It reflects the company's operating performance and whether it made a profit or incurred a loss during that time.

* Financial statement of an enterprise includes statement of profit and loss, statement of balances of liabilities and assets, and Cash Flow Statement: This statement is true. Financial statements typically include the three main components:

Statement of Profit and Loss: Reflects the company's revenues, costs, and expenses.
Statement of Balances of Liabilities and Assets: Known as the Balance Sheet, it provides an overview of a company's financial position at a specific point in time.
Cash Flow Statement: Shows how changes in balance sheet accounts and income affect cash and cash equivalents.

* Financial statement helps an analyst to drive decision: This statement is true. Financial statements are crucial tools for financial analysis. Analysts use these statements to assess a company's financial health, performance, and stability. By analyzing trends, ratios, and other financial metrics, analysts can make informed decisions about investing, lending, or other financial transactions.

* Financial statement do not include Cash Flow Statement: This statement is false. Financial statements do include a Cash Flow Statement, along with other components like the Statement of Profit and Loss and the Balance Sheet. The Cash Flow Statement is essential for understanding how cash moves in and out of a company over a specific period.