Financial statements (or financial reports) are formal records of a company’s financial activities. These lists give a summary of the financial position and profitability of this company in the short and long term.
The financial statements are divided into four main statements:
Balance Sheet: It is also called the financial position statement. It shows the value of the company’s assets and liabilities (discounts or liabilities) and the value of shareholders’ equity at a specific point in time.
Income statement: It is also called the profit or loss statement. This list shows the results of the company’s operations during a period of time.
Cash flow statement: This list presents a report on the company’s cash flow activities, especially business, investment and financial activities.
Shareholders’ Equity List: This list shows the cumulative shareholders’ rights and the details of that from the capital, retained earnings and other shareholders’ rights.