links between financial statement

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 links between financial statement 

THE FINANCIAL STATEMENTS ARE LINKED AS SHOWN


How do you can link between financial statements each others?

try to configur the relation between financial staements as shown;



Assets = Equity + Liabilities

1- Assets are devided into cash and other assets.
  - Cash is displayed in statement of cash flows.
  - The result of statement of cash flow( Ending cash balance) is transferred to the cash value.
  - And cash value is transffered to the beginning of the next year.

2-Statement of profit or loss explains the expenses and revenus and its result is transffered to the balance sheet at the credit side so, It usually added to the equity value. 
  - The resulted value of net income reffers to a positive or negative value

3- The value of net profit can be an element resposible for the changes may appears on the statement of changes in equity.
  - The changes in equity depends on to variable they are the net profit and drawings.





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