The main features of financial statements can be expressed as follows:
1. Historical Data
Financial statements are prepared on the basis of historical or past business data and information of the firm.
2. Monetary Terms
Only quantitative aspects of the business ( can be expressed in monetary terms) are included while preparing financial statements of the firm.
3. Fixed Period
Financial statements provide financial information for the fixed period of time or one accounting period.
4. Simple To Understand
Data and information provided by financial statements should be simple and understandable to the users.
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5. Comparability
The information provided by financial statements should be comparable with the data and information of other firms.
