A financial statement is a written record of a company's business activities and financial performance. Audits of financial statements are often done by government agencies, accountants, and CPA firms in order to ensure accuracy, and for tax, financing, or investing purposes.
Typical financial statements include the following:
Analysts and investors use financial data to analyze the performance of a company and predict its future stock price direction. The annual report, which contains the firm's financial statements, is a valuable source of reliable and audited financial data.
Investors, market analysts, and creditors use financial statements to evaluate a company's financial health and earnings potential. A financial statement consists of three major reports: a balance sheet, an income statement, and a cash flow statement.