Financial statement
Financial statements are the formal reports produced at the end of a period to communicate a company's position, performance, and cash movements. The three core documents are the balance sheet, income statement, and statement of cash flows.
Also known asfinancial statements · financial reporting
See it move
The flow diagram links three financial statements in sequence: the income statement (revenue minus expenses equals net income, covering a period), the balance sheet (assets equal liabilities plus equity, at a point in time), and the statement of cash flows (cash inflows minus outflows classified by activity, covering a period). Two connectors join them: net income from the income statement flows into retained earnings on the balance sheet, and the cash flow statement explains why the cash balance changed between two successive balance sheet dates.
Check yourself
Cresta SA reports net income of €40,000 for the year. Which statement correctly describes how this single figure links at least two of the three core financial statements?