Financial Statements

Financial Statements are summed up accounting documentations made at acknowledged time periods to update the owner, creditors, and other stakeholders as to the successful operations of the business. Financial Statements makes use of summed up statistics to put in order the business’s financial reports. There are three main financial statements:

-Balance Sheet

-Trading and Profit and Loss Account

-Statement of Cash Flows

The (1) balance sheet, which gives you an idea about the organization’s assets, liabilities, and net worth on an acknowledged date; (2) income statement (also called profit & loss account), which gives you an idea about how the net income of the firm is obtained over a given period, and (3) cash flow statement, which gives you an idea of the inflows and outflows of cash formed by the firm’s operations during a given period.