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Basic Financial Statements

There are three basic types of financial statements that provide stakeholders a broad picture of an organization's finances. What are these three statements? Describe each of them.

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Please refer to the sources below for more information. The information below is from these books.

Financial Statements Demystified, Fourth Edition, by David Hey-Cunningham. Allen & Unwin.2006
Analysis of Financial Statements, Third Edition, Pamela Peterson Drake and Frabk J Fabozzi. John Wiley &sons. 2012

THE BALANCE SHEET - The monitoring of assets, liabilities and equity is an important aspect of managing an enterprise. These items are reported on the balance sheet.
This balance is expressed from the owners' perspective as the equation E=A−L (where E is equity, A is assets and L is liabilities). The assets are used to generate ...

Solution Summary

The three basic financial statements are balance sheet, income statement and cashflow statement.