Major financial statements
Financial statements are the most important outcome of the accounting system. They communicate financial information gathered and processed in the company's accounting system to parties outside the business.
The four principal financial statements are:
- Income statement (statement of earnings)
- Balance sheet (statement of financial position)
- Cash flow statement
- Statement of changes in owners' or stockholders' equity
These four financial statements, augmented by footnotes and supplementary data, are interrelated. In addition, there are other sources of financial information, such as management discussion and analysis, auditor's reports, etc.
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