Overview of Financial Statements

Financial statements are essential tools for assessing the financial health of a business. This article explains the different types of financial statements and their significance.

Types of Financial Statements

• Balance Sheet: A snapshot of a company's assets, liabilities, and equity at a specific point in time.
• Income Statement: Shows the company's revenues and expenses over a period, indicating profitability.
• Cash Flow Statement: Provides insights into cash inflows and outflows, highlighting liquidity.

Understanding these statements is crucial for stakeholders to make informed decisions.