Financial statements provide a company, as well as anyone else who might be interested (such as investors or lenders), with information about the value of their company. This includes income and assets during a particular accounting period, as well as its assets, liabilities, and equity at a certain point in time.
Statements will generally consist of balance sheets, income statements, and a cash flow statement. Some companies may also choose to include a statement of stockholders’ equity as well as a statement of comprehensive income. Income statements may also be referred to as an operations statement, a statement of profit and loss, or an earnings statement.