FINANCIAL STATEMENTS / FINANCIAL REPORTS Financial statements ( financial reports ) are formal records of a business financial activities. these statements provide an overview of a business profitability and financial condition in both short and long term. There are five basic financial statements: Balance Sheet Balance sheet also referred to as statement of financial position or condition, reports on a company assets, liabilities and net equity as of a given point in time. Income Statement Income statement also referred to as profit or loss statement. reports on a company results of operations over a period of time. Cash Flow Statement Statement of cash flows reports on a company cash flow activities, particularly its operating, investing and financing activities. Statement of Changes in Equity Statement of retained earnings explains the changes in a company retained earnings over the reporting period. Notes to the Financial Statements Notes to the f...
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