Finance

Close-up of a balance sheet document on wooden surface with a magnifying glass held by a hand.

Financial Statements: Financial statements tell us what a business owns, owes, earns, and spends

Financial statements are structured report that presents a business’s financial position and performance. It primarily includes the balance sheet (showing assets, liabilities, and equity), the profit and loss statement (showing income and expenses), and the cash flow statement (showing cash movements). Together, these statements provide a clear overview of what a business owns, owes, earns, and spends.

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