Income statements

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Marnie
Marnie Registered Posts: 1
in Management Accounting: Costing
I had an AAT question relating to income statements. I thought the financial statements were called statement of profit or loss and statement of financial position?

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  • davealucas
    davealucas Registered Posts: 140 Dedicated contributor 🦉
    edited May 2019
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    You are correct along with Statement of Cash Flow and the Statement of Changes in Equity. The Statement of Profit & Loss can also be known as the Statement of Financial Activities whilst the Statement of Financial Position can also be known as the Balance Sheet. Confusing I know. You will come across these in more detail in Level 4.

    The Income Statement will often be part of the Statement of Profit & Loss and Other Comprehensive Income, but will also form part of the Management Accounting scenario which are not financial statements in the normal sense but are an information item for managers to made financial control decisions.

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