Answer:
True
Explanation:
Financial statement of an organisation consist of the Income statement, Balance sheet and the statement of cash flow.
The income statement shows the total revenue and expenditure of firm during a period (i.e, during a trading year). Income statement usually is prepared to show the gross profit and net profit of the business during a trading period.
On the other hand, The balance sheet of a firm shows the financial position of the firm as at a particular period of time. It show the owner's equity, the asset and the liabilities of the business as at a particular date.
However, the cash flow statement shows the inflow and outflow of cash in and out of the business. it shows the net change in cash resulting from the operation, investment and other financial activities of the firm during a period of time.
Hence, we can conclude that the main quality of a financial statement is that it must be timely (i.e should be available immediately at the end of the financial year for it to be useful because when delayed, it become useless.
