2. Financial statement 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, balance sheet, statements of retained earnings and
cash flows, as well as other possible statements.
3. The Three financial Statement
Statement Type Description
The Income Statement A summary of how the business incurs its
revenues and expenses through both
operating and non-operating activities.
Balance Sheet A financial statement that summarizes a
company's assets, liabilities and
shareholders' equity
Statement of Cash flow Provide data regarding all cash inflows a
company receives from both its ongoing
operations and external investment
sources
4.
5.
6. The Income Statement
Total Revenue = Money company earn by selling
Cost of Revenue= All the Cost to made those sales
Gross Profit= Profit made after reducing cost
Operating Expense= Any expense to operate
NET INCOME
THE INCOME A COMPANY TRULY
EARNS AFTER REDUCING ALL The COST
7. Balance Sheet
Current Asset includes the company inventory,
cash..etc
Total Asset Represent the sum of all the
company asset
Liability represent the liability a company has.
Stockholder equity is the sum of the
shareholder a company have and their Retain
Earning.
Retain Earning is a number from Net income
reduce the dividend a company declared.
8. The Statement of Cash flow
Cash flow from operating activities
represent the cash inflow to the
company from operating activities
such as change in Liabilities and
Asset.
Cash Flow from investing activities
represent the cash inflow to the
company from investing activities
such as buying bonds of other
company.
Cash flow from finaning activities
represent the cash inflow to the
company from financing activities
such as borrowing money from the
bank.