Financial statements represent a prescribed record of the financial conduct of an entity, see below. These are written reports that measure the financial performance, strength, and liquidity of a company. Financial statements also highlight the financial effects of business transactions and events on the entity.
Financial statements provide useful information to a variety of stakeholders:
Managers require financial statements to manage the company by considering its financial performance and position and to make important business decisions.
Stockholders use financial statements to measure the risk and return ...