Horti-Business Management

Financial Statements

Definition

• Financial statements are a collection of reports about an organization's financial condition. The standard contents of a set of financial statements are:
• Balance sheet. Shows the entity's assets, liabilities, and stockholders's equity as of the report date.
• Income statement. Shows the results of the entity's operations and financial activities for the reporting period.
• Statement of cash flows. Shows changes in the entity's cash flows during the reporting period.
• Businesses report information in the form of financial statements issued on a periodic basis.
• Balance Sheet - statement of financial position at a given point in time.
• Income Statement - revenues minus expenses for a given time period ending at a specified date.
• Statement of Cash Flows - summarizes sources and uses of cash; indicates whether enough cash is available to carry on routine operations.