October 20, 2011

What are the Four Basic Financial Statements?

The four types of financial statements are:
  1. Balance sheets – provide insight into the financial status of a organization/company for a particular time; differing from other statements, which provide information over a broader period of time.
  2. Cash flow statements - these statements illustrates where an organization uses its money (operating costs, investment activities, and/or financing activities).
  3. Income statements - determine the profit/loss of a particular organization/company.
  4. Statements of Retained earnings - refer to changes in the title rights of equities in an organization.