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Explain The Four Basic Financial Statements

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Explain The Four Basic Financial Statements
There are four basic financial statements that companies use. They begin with income statement, statement of owner’s equity, balance sheet, and the statement of cash flows. Company’s use income statements to report how much money they have made and how much they have spent over a specified period of time. The statement of owner’s equity is used to report any changes in equity from a company’s net income or net loss, as well as report changes in the owner’s investments and withdrawals over a specified period of time. The balance sheet is used to report a company’s financial position at any point in time. This statement includes information such as what types of assets and their amounts, liabilities, and equity. The statement of cash flows is
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