Business World

Kinds of Financial Statements

Financial statements are documents used to show the financial situation in an organization. There are four kinds of financial statements: balance sheets, income statements, cash flow statements and statement of retained earnings.Income statements indicate the amount or profit or loss the company has incurred in the past year. Balance sheets show the company’s long term and short term assets and liabilities. The cash flow statement shows all the money that came into the business over a definite period of time and the amount that went out during the same period. Retained earnings statements show changes in an organization’s holdings over a specified period.

Tags: Kinds of Financial Statements