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Financial Reports or Financial Statements

Financial report (financial statements) are documents reporting on the activities of a business in monetary terms, in order to provide information to help users make informed business decisions.

Financial reports (financial statements)  consist of:
1. Consolidated Profit and Loss (Income Statement). A summary of income and expenses (revenue and expenses) in a certain period of time such as months or years.
2. Statement of Changes in Equity (Statement of Owner's Equity). Summary of changes in owner's equity ownership (increases or decreases) during a certain period (months or years).
3. Balance Sheet. A list of assets, liabilities, and capital on a given date (months or years).
4. Cash Flow Statement (Statement of Cash Flows). Summary of receipts and expenditure of money for a certain period (months or years).

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