What's written in a financial statement?

[Starmix]

A financial statement provides a snapshot of a company’s or an individual’s financial health. There are three main types of financial statements such as: Income Statement, Balance Sheet, and Cash Flow Statement.

The income statement shows the profit and loss statement. It shows revenues, expenses, and the resulting profit or loss over a specific period. Regarding the Balance Sheet, it presents a picture of assets, liabilities, and equity at a specific point in time. It shows the financial position at a given moment. The basic accounting equation is always reflected: Assets = Liabilities + Equity.

The Cash Flow Statement tracks the movement of cash both into and out of a company or individual during a specific period. It shows where the cash came from and how it was used. It is crucial because profit doesn’t equate to cash in hand.

The specific details and level of detail will vary depending on the size and complexity of the entity. For individuals. A simplified version might focus on income, expenses, and net worth. For large corporations, these statements can be extensive.

 

[Springtime]

Financial statements reflects the financial health of a company. Unless for small shops, almost all businesses prepare financial statements.

 

[Starmix]

A financial statement helps the management track their expenses and the expenses not part of the company's list or procurement. It will also be known if there's a better performance of the company or business.

 

[Suba]

@Starmix, good explanation and it seems you want to be an accountant, and maybe I need to add the missing financial statements such as Statement of Changes in Equity which shows changes in capital either from personal investment or from retained earnings or due to business losses. In addition there are also Notes to Financial Statements which explain in detail about the information contained in the financial statement, such as the accounting policies used, for recording inventory and depreciation etc.

 

[Starmix]

@Starmix, good explanation and it seems you want to be an accountant, and maybe I need to add the missing financial statements such as Statement of Changes in Equity which shows changes in capital either from personal investment or from retained earnings or due to business losses. In addition there are also Notes to Financial Statements which explain in detail about the information contained in the financial statement, such as the accounting policies used, for recording inventory and depreciation etc.

I was once hired as a branch manage the next day after graduating from the University. It was a pre-need company so I was forced to study accounting until the company hired an accountant to assist me. I was a new graduate but lucky hehe. You're expert at that being an accountant. It's not easy course though my course isn't easy too , BS Physics.

 

[Trush Jodie]

A financial statement shows the record of transactions that a business has done over the period of time.

 

[Augusta]

Income Statement: This statement summarizes a company's revenues, expenses, and profits or losses over a specific period.

 

[Starmix]

A financial statement provides a snapshot of a company’s or an individual’s financial health. The company will know if it profits or not, if its assets grow .

 

[eLdavis]

A financial statement often contains the details of your transactions for a specific period of time, all the money that comes in and out.

 

[Starmix]

It's a tracking rhetoric in company's It's also required as proof once the company invests. A healthy financial statement is applauded and appreciated by stakeholders.