A financial statement is a formal record of the financial activities and position of a business, organization, or individual. It includes:
1. **Balance Sheet**: Shows assets, liabilities, and equity at a specific point in time, providing a snapshot of financial position.
2. **Income Statement**: Details revenues, expenses, and profits over a period, highlighting operational performance.
3. **Cash Flow Statement**: Tracks cash inflows and outflows from operating, investing, and financing activities, indicating liquidity.
4. **Statement of Changes in Equity**: Reflects changes in ownership equity over a period, including retained earnings and other adjustments.
These statements provide crucial insights for decision-making, financial analysis, and compliance with regulations.
