Financial statements present a summary of actual financial activity.  While these statements may stand alone, they are often part of a larger business document.  (For example, Business Plans include balance sheets, income statements and cash flow analyses.)  Financial statements are usually presented in table form.  These statements may be presented as part of the body of the document or as appendices.

(Click on the underlined hyperlinks for additional information and samples of each type of statement.)

Income Statement- "profit and loss statement," "statement of incomes and losses," or "report of earnings"

• Income earned during the accounting period
• Costs or expenses that were incurred during the period
• Difference between costs and incomes for the period

or net profit (or loss)

• Statement of a company's relative wealth or financial position at a given time
• Includes assets, liabilities, and owners' equity

• The statement of changes in financial position ("sources and uses of cash") explains how money was aquired and spent
• The statement of changes in equity ("statement of owner's equity") compares the amount of owners' equity at the beginning and at the end of the period

• Compares data from balance sheets and income statements over time, or with other companies or industry groups