ABSTRACT
The normal financial statements prepared by companies are: statement of financial position; statement of comprehensive income; statement of changes in equity; and statement of cash flows. The volume of transactions that a business enterprise encounters in a financial year depends on the size of the entity and the nature of its business. For financial reporting purposes, business activities may be classified into three key categories, namely operating, investing and financing activities. The compilation of financial statements is not the first step in the accounting process, but it is a suitable stage to commence the study of accounting. In the financial statements, assets are divided into three key categories, namely current assets, fixed tangible assets and intangible assets. Investing activities are activities that are concerned with the purchase and sale of fixed assets, such as property, plant and equipment; and financial instruments such as company shares and securities.
