The four financial statements
Companies prepare four financial statements from the summarized accounting data:
- Income Statement: An income statement presents the revenues and expenses and resulting net income or loss for a specific period of time.
- Owner’s Equity Statement: An owner’s equity statement summarizes the changes in owner’s equity for a specific period of time.
- Balance Sheet: A balance sheet reports the assets, liabilities and owner’s equity at a specific date.
- Cash Flow Statement: A statement of cash flows summarizes information about the cash inflows (receipts) and outflows (payments) for a specific period of time.