Glossary

A financial statement is a formal record of a company's financial activities, providing a snapshot of its financial health. 💰

It consists of three key components: the balance sheet, which outlines a company's assets, liabilities, and shareholders' equity; the income statement, which reports revenue and expenses, resulting in the net income; and the cash flow statement, which tracks the inflow and outflow of cash during a specific period.

For example, Apple Inc.'s financial statements provide insights into the company's revenues, profits, assets, and debts. 🍏

Fun fact: Financial statements are often audited by independent accountants to ensure their accuracy and reliability. 🔍 Publicly traded companies must file their financial statements with regulatory agencies such as the U.S. Securities and Exchange Commission (SEC) to maintain transparency and investor confidence.