Question

Explain the difference between financial reporting and financial statements.

Answer 1

Answer:

Financial statement and financial report have differences in their nature and use.

Explanation:

Financial statements are formal statements that gives information about the income of a company at any point of time while financial report gives an idea about the overall financial state of a company based on the income as well expense of the company.

Financial statements will be produced several times in a financial year while a financial report is developed once in a year. A financial report gives an overall idea about the financial worth of the company and the profit made in a financial year.