Financial Statements Overview

Front

What are the principal financial statements of a corporation?

Back

The balance sheet, income statement, statement of stockholders’ equity, and statement of cash flows.

Front

What is the purpose of the notes that accompany financial statements?

Back

To help evaluate the financial condition, profitability, and cash flows of an entity.

Front

Which financial statement is considered the most basic?

Back

The balance sheet.

Front

What do the other financial statements explain?

Back

The changes between two balance sheet dates.