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Financial Statements - Explained

What are Financial Statements?

Written by Jason Gordon

Updated at April 7th, 2022

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Table of Contents

What are Financial Statements?What are the Main Financial Statements?

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.


Back to: Accounting & Taxation

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. 

Related Topics

  • What are Financial Statements? – Financial Accounting
    • Consolidated Financial Statements
  • What is the Income Statement? – Financial Accounting
    • What are Revenues? – Financial Accounting
    • What are Expenses? – Financial Accounting
  • What is the Statement of Retained Earnings – Financial Accounting
  • What is a Balance Sheet? – Financial Accounting
    • Accounting Equation Definition
    • What are Assets? – Financial Accounting
    • What are Liabilities? – Financial Accounting
    • What is Equity? – Financial Accounting
  • What is the Statement of Cash Flow? – Financial Accounting
  • Analysis and Creating Financial Statement 
financial statements

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