Financial Statements - Explained
What are Financial Statements?
Written by J. Mance Gordon
Updated at April 18th, 2024
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What are Financial Statements?
Financial statements are the reports used to communicate the accounting information to the end user.
Accounts identify, report, and communicate. The financial statements are a method of reporting and communicating information to the end user.
The financial report should be structured in such as way that the end users, whether they be stakeholders or investors or creditors, can understand it. They can compare it. It's reliable and it's relevant information.
What are the Main Financial Statements?
There are four main financial statements include:
- Income statement,
- Statement of retained earnings,
- Balance sheet, and
- Statement of cash flow.
There may be some other ones that are thrown in there in specific circumstance.