Financial Statements

Financial statements are formal records that provide an overview of a company's financial performance and position. The main types include the balance sheet, which shows what a company owns (assets) and owes (liabilities) at a specific time; the income statement, which summarizes revenues and expenses over a period, indicating profitability; and the cash flow statement, which details cash inflows and outflows. Together, these documents help investors, creditors, and management understand the company's financial health, guiding decision-making and investment assessment.