What are the different types of financial statements?

Financial statements aid in making decisions about investing in a company, lending money to a company, or providing other forms of financing. There are three main types of financial statements: balance sheets, income statements, and cash flow statements. These are compiled using Generally Accepted Accounting Principles (GAAP).

What is a financial statement?

Financial statements provide interested parties with a company's overall financial condition and profitability. Statements required by Generally Accepted Accounting Principles are the balance sheet, the income statement, and the statement of cash flows, but you'll likely see more in reports.

What are the three main financial statements?

Financial statements are records of a company’s financial activities and are used to reflect its performance. The three main financial statements are the balance sheet, income statement, and cash flow statement. These statements are vital for understanding a company's financial situation, performance, and cash flow.