Financial Statement

A financial statement is a formal, standardized record that summarizes the financial activities, performance, and position of a business or other entity over a specific period. Financial statements include the balance sheet (assets, liabilities, and equity at a point in time), income statement (revenues, expenses, and profits over a period), cash flow statement (cash movements from operations, investing, and financing), and statement of changes in equity or retained earnings. These statements are essential for investors, creditors, managers, and regulators to evaluate a company's financial health, make comparisons, and inform strategic decisions. Financial statements are prepared according to accounting standards such as GAAP or IFRS to ensure consistency and comparability across organizations.