Financial Statements
📈 Investing
Quick Definition
Financial statements are formal records of the financial activities and position of a business, person, or other entity, providing an overview of a financial situation over a specific period.
Examples
- 1A corporation's annual report containing its income statement, balance sheet, and cash flow statement.
- 2A small business owner reviewing their financial statements to assess profitability and manage expenses.
- 3Investors analyzing a company's financial statements to make informed investment decisions.
- 4A loan officer reviewing a company's financial statements to determine creditworthiness.
Tags
financial-analysiscorporate-financeaccountinginvestment-decisionfinancial-reporting
Related Terms
Other terms you might find helpful
Asset Management
Asset management is the process of developing, operating, maintaining, and selling assets in a cost-effective manner to maximize their value.
Balance Sheet
A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.
Income Statement
An income statement is a financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing how the revenue is transformed into the net income.
Quick Info
Category:Investing
Difficulty:intermediate
Last Updated:6/19/2025