Basic Information Regarding Financial Statement

A financial statement is an official record of the financial activities of an individual, business or other thing. This statement is often referred to as an account, even though the term financial statement is also used, mostly by accountants. It provides an overview of a business or person's financial condition in both short and long term.

It is a tool used to communicate financial information of an entity to those who wants to make decision and informed judgments about the entity's economic position, results of operation and cash flows. There are four financial statement such as Balance Sheet, Income Statement, Statement of Cash Flows and Statement of changes in owner's equity. These four financial statements have unique purpose but they are interrelated. For a business venture, all the significant financial information, offered in a structured way and in a form simple to understand, are called the financial statements.

Many other reputed firms provide financial statement analysis & financial statement preparation services such as:

• Balance Sheets
• Statements of Equity
• Financial Ratio Analysis
• Profit and Loss Statements
• Financial Statement Analysis
• Statements of Cash Inflow
• Statements of Cash Outflow

Generally financial statement is a written statement which quantitatively describes the financial strength of a company. This includes a profits statement and a balance sheet, and frequently also includes a cash flow statement. Financial statements are frequently compiled on a quarterly and yearly basis. Statements of retained income illustrate changes in a companies or organizations retained income over an exact period of time. These statements illustrate the opening and final balance of retained income, as well as any adjustments to the balance that take place throughout the reporting period. This information is sometimes integrated as measurement of the balance sheet, or it may be shared with an earnings statement. Though, it is regularly provided as a totally separate statement.