Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.

What do mean by financial statement?

Financial statements are written records that convey the business activities and the financial performance of a company. The balance sheet provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.

What are examples of financial statements?

The primary financial reports are: the profit and loss statement, balance sheet and statement of cash flow. To see what these statements look like, start with the financial data from ABC Corp. Using this information, you can figure out how to prepare several examples of financial statements: Sales: $3,200,000.