Monique H. answered • 03/27/19
Enrolled Agent and Accountant with concise lectures
There are four (4) standard financial statements:
1) Balance Sheet
2) Income Statement
3) Statement of Cash Flows
4) Statement of Owners Equity
(Notes to the financial statement are an integral part of financial statements for complex and large public corporations. They provide explanations for business performance and foresight into what’s to come.)
These statements are prepared according to generally accepted accounting principles (GAAP). They tell a story about the past business performance of a company and are used for making management, investment, and lending decisions. The three main users of financial information are managers/owners, lenders, and investors, and they attain this information through analyzing financial statements.
Financial statements are prepared and issued periodically so that users can pin-point trends and evaluate the businesses viability. They are required to be issued annually to shareholders of public corporations.
