What is a financial statement?
A financial statement refers to a formal record of a company’s financial activity and position over a period.
What types of financial statements exist?
The main types include:
• Income statement
• Balance sheet
• Cash flow statement
Why are financial statements important?
They provide a structured view of performance and financial health, supporting decision making and compliance.
Who prepares financial statements?
Accountants prepare them, often reviewed by auditors for accuracy.
Are financial statements regulated?
Yes. Standards such as IFRS define how financial information must be presented.