Financial Statement

A financial statement is a formal record that shows a company's financial health at a specific point in time or over a period. It includes three main parts: the income statement (profit and loss), which shows how much money the company earned and spent; the balance sheet, which details what the company owns (assets), owes (liabilities), and the owners' share (equity); and the cash flow statement, which tracks the money coming in and going out. These statements help stakeholders understand the company's financial performance, stability, and liquidity.