Financial statements are reports in writing that explain a company’s operations as well as its commercial success. Government entities, accounting firms, and other institutions frequently examine financial statements to assure their authenticity and for considerations regarding taxes, financing, or purchasing. The asset value, income statement, cash flow statement, and change in equity statement are for-profit corporations’ four basic financial statements. Charitable groups employ a comparable but distinct collection of financial statements.
Traders, industry analysts, and debtors examine the financial reports to assess the company’s financial stability and future profitability. The three primary company’s financial presentations are capital structure, operating income, and cash flow statements.