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  1. 1.  Financial statement records that outline the financial activities of a business, an individual or any other entity.  Financial statements are meant to present the financial information of the entity in question as clearly and concisely as possible for both the entity and for readers.  Financial statements for businesses usually include: income statements, balance sheet, statements of retained earnings and cash flows, as well as other possible statements.
  2. 2. The Three financial Statement Statement Type Description The Income Statement A summary of how the business incurs its revenues and expenses through both operating and non-operating activities. Balance Sheet A financial statement that summarizes a company's assets, liabilities and shareholders' equity Statement of Cash flow Provide data regarding all cash inflows a company receives from both its ongoing operations and external investment sources
  3. 3. The Income Statement Total Revenue = Money company earn by selling Cost of Revenue= All the Cost to made those sales Gross Profit= Profit made after reducing cost Operating Expense= Any expense to operate NET INCOME THE INCOME A COMPANY TRULY EARNS AFTER REDUCING ALL The COST
  4. 4. Balance Sheet Current Asset includes the company inventory, cash..etc Total Asset Represent the sum of all the company asset Liability represent the liability a company has. Stockholder equity is the sum of the shareholder a company have and their Retain Earning. Retain Earning is a number from Net income reduce the dividend a company declared.
  5. 5. The Statement of Cash flow Cash flow from operating activities represent the cash inflow to the company from operating activities such as change in Liabilities and Asset. Cash Flow from investing activities represent the cash inflow to the company from investing activities such as buying bonds of other company. Cash flow from finaning activities represent the cash inflow to the company from financing activities such as borrowing money from the bank.