Table of Contents
The Basic Financial Statements
The basic financial statements are the balance sheet, the income statement, the statement of cash flows, and the statement of shareholders’ equity.
The basic financial statements are:
- Balance sheet
- Income statement
- Statement of cash flows
- Statement of shareholders’ equity
Balance Sheet
The balance sheet is a report of the assets, liabilities, and equity of a company at a point in time, generally at the end of a fiscal quarter or fiscal year.
Income Statement
The income statement is a report of what the company earned during the fiscal period. The income statement is a summary of operating performance over a period of time (e.g., a fiscal quarter or a fiscal year).
Statement of Cash Flows
The statement of cash flows is the summary of a company’s cash flows, summarized by operations, investment activities, and financing activities.
Statement of Shareholders’ Equity
The equity of a company is the ownership interest. The book value of equity, which for a corporation is often referred to as shareholders’ equity or stockholders’ equity, is basically the amount that investors paid the company for their ownership interest, plus any earnings (or less any losses), and minus any distributions to owners.
