Financial Statement
What is a Financial Statement?
A financial statement is a document or report that presents a company's financial performance and position at a specific point in time. Financial statements provide information about a company's revenues, expenses, assets, liabilities, and equity, and are used by stakeholders such as investors, creditors, and regulators to assess the financial health and viability of the company.
Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes
There are several different types of financial statements, including:
- Balance Sheet: A balance sheet is a financial statement that presents a company's financial position at a specific point in time, showing its assets, liabilities, and equity. The balance sheet is used to assess the company's financial stability and its ability to meet its financial obligations.
- Income Statement: An income statement is a financial statement that presents a company's revenues, expenses, and profits over a specific period of time, such as a month or a year. The income statement is used to assess the company's financial performance and profitability.
- Cash Flow Statement: A cash flow statement is a financial statement that presents a company's inflows and outflows of cash over a specific period of time. The cash flow statement is used to assess the company's liquidity and its ability to generate and manage cash.
- Statement of Changes in Equity: A statement of changes in equity is a financial statement that presents the changes in a company's equity over a specific period of time. The statement of changes in equity is used to assess the company.
See Also