Which of the following is the element of the financial statements of a company?
Answer & explanation
Correct answer: option 3
The financial statements generally include two statements: balance sheet and
statement of profit and loss which are required for external reporting and also
for internal needs of the management like planning, decision-making and
control. Apart from these, there is also a need to know about movements of
funds and changes in the financial position of the company. For this purpose,
a cash flow statement is prepard.