Financial Statements

What are Financial Statements?

Financial statements are comprehensive reports that summarize the financial performance and position of a business over a specific period. These documents provide crucial information to stakeholders about the financial health and operations of the company, helping in decision-making processes.

Short Description: Financial statements are official records that outline the financial activities and position of a company.

• Balance Sheet: Provides a snapshot of the company's assets, liabilities, and shareholders' equity at a specific point in time.
• Income Statement: Also known as the profit and loss statement, it shows the company's revenues, expenses, and profits or losses over a fiscal year or periodic basis.
• Cash Flow Statement: Tracks the inflow and outflow of cash, highlighting how well the company manages its cash position and operational efficiency.
• Statement of Changes in Equity: Reflects changes in the company's equity throughout the reporting period, including new investment or dividends.

Financial statements are crucial for assessing the financial integrity, earning potential, and growth opportunities of a business.