Financial statements are formal records of a company’s financial activities. They provide an overview of a business's financial performance and position. The main types are:
Income Statement – Shows profitability over a period.
Balance Sheet – Displays assets, liabilities, and equity at a specific point in time.
Cash Flow Statement – Tracks cash inflows and outflows.
Statement of Retained Earnings – Shows changes in retained earnings over a period.
These statements help stakeholders assess the company’s financial health and make informed decisions.
