Financial Statements

Financial Statements provide information in order to evaluate a company's financial performance. they are a layout for pinpointing where your company has been and where it is going. Financial statements contain information, often required by most laws.

Financial statements typically include:

Assets: economic gains received or handled by an external entity as a result of previous transactions.

Comprehensive income: changes in equity (net assets) over time as a result of transactions and other external events and conditions. Except for changes in equity coming from owner investments and dividends to owners, it contains all changes in equity throughout a period.

Distributions to owners: declines in net assets due to the transfer of assets, the rendering of services, or the incurring of liabilities to the owners. Ownership interest is reduced as a result of distributions to owners.

Equity: after removing its liabilities, it retains a residual interest in the assets that remain. The ownership interest in your company is referred to as equity.

Expenses: outflows, asset uses, and liabilities inflicted during a specific period when your central activities are not delivering or producing products or services.

Gains: increases in equity (net assets) from business and other transactions, except those resulting from revenues or investments by the owner.

Investments by owners: increases in net assets as a result of transfers of things of value to it from other entities to obtain or raise ownership interest (or equity) in it.

Liabilities: future economic benefits are likely to be sacrificed as a result of current obligations to transfer assets or deliver services in the future as a result of previous transactions or events.

Losses: decreases in equity (net assets) from all business transactions and events and circumstances affecting a business during a period except that result from expenses or distributions to owners.

Revenues: inflows or upgrades of a business' assets or settlement of its liabilities over a period of time resulting from delivering or producing items, rendering services, or other actions that are part of the firm's continuous central operations.