Financial Statements
Formal records of the financial activities and position of a business, including the balance sheet, income statement, and cash flow statement.
Formal records of the financial activities and position of a business, including the balance sheet, income statement, and cash flow statement.
Introduction: Financial statements are formal records of the financial activities and position of a business, entity, or individual. They provide essential information to stakeholders—including shareholders, creditors, and regulators—about the entity's performance, liquidity, and changes in financial position. The primary financial statements include the Balance Sheet, Income Statement, and Cash Flow Statement, each offering unique insights into different aspects of the entity’s financial health and aiding in informed decision-making.
Primary Components of Financial Statements:
Utilizing Financial Statements: