Question

In addition to the four financial statements, list three sources of financial information available to external stakeholders?

Answer 1

The four financial statements are income statement, Balance sheet, Cash flow statement and statement of shareholders equity. There are other sources of financial information which are

· Managers and director’s compensation: Companies do publish information about the managers and director’s compensation as how is the total component segregated. How much is variable component and how much is fixed component.

· Stock performance: The companies also issues statement regarding the performance of stock as to how it has been in the fiscal year and what is expected performance in the coming years.

· Press releases regarding mid term earning and other important events: The company management issue press release and statement regarding mid-term earnings and any new event which has occurred and what action the company has actually taken to deal with the situation.