What are Financial Statements and Why are They Important?
Financial statements are formal records of the financial activities of a business. They provide crucial information about the financial health of an organization. The main financial statements include:
Income Statement: Shows the company's revenues and expenses over a specific period. Balance Sheet: Provides a snapshot of the company's assets, liabilities, and equity at a specific point in time. Cash Flow Statement: Details the cash inflows and outflows over a period.