Financial Statements Definition | Investopedia

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DEFINITION of 'Financial Statements'

Records that outline the financial activities of a business, an individual
or any other entity. Financial statements are meant to present the
financial information of the entity in question as clearly and concisely
as possible for both the entity and for readers. Financial statements for
businesses usually include: income statements,
statements, balance sheet,
sheet,
statements of retained earnings and cash flows,
flows, as well as other
possible statements.

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BALANCE SHEET

UNCONSOLIDATED
SUBSIDIARY

ACCOUNTING
THEORY

ADMINISTRATIVE
BUDGET

00:05

01:47

BREAKING DOWN 'Financial Statements'

It is a standard practice for businesses to present financial statements that adhere to generally
accepted accounting principles (GAAP), to maintain continuity of information and
presentation across international borders. As well, financial statements are often audited by
government agencies, accountants
accountants,, firms, etc. to ensure accuracy and for tax, financing or
investing purposes. Financial statements are integral to ensuring accurate and honest
accounting for businesses and individuals alike.

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The process of reviewing and evaluating a

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Financial Statements Definition | Investopedia

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