What are the four financial statements of a business?

What are the four financial statements of a business?

The four basic financial statements

• Income statement. An income statement, also known as a profit and loss (P&L) statement, shows you your business’s profits and losses over a certain period of time.
• Balance sheet.
• Cash flow statement.
• Statement of retained earnings.

Is income statement and financial statement the same?

The income statement might be the same as the P&L, but it is different from the other financial statements. There are three main financial statements, including the income statement, balance sheet, and cash flow statement. The income statement summarizes income and expenses.

Is income statement a financial statement?

What is an Income Statement? An income statement is one of the three important financial statements used for reporting a company’s financial performance over a specific accounting period, with the other two key statements being the balance sheet and the statement of cash flows.

What is the difference between balance sheet and financial statement?

Key Differences Between Balance Sheet and Financial Statement. A Balance Sheet reveals the assets owned and debts owed by the entity, whereas Financial Statement reflects the health of the entity. A Balance Sheet is a part of Financial Statement, but Financial Statement is not a part of Balance Sheet.

What is the difference between a P&L statement and a balance sheet?

P&L Statement. Here’s the main one: The balance sheet reports the assets, liabilities and shareholder equity at a specific point in time, while a P&L statement summarizes a company’s revenues, costs, and expenses during a specific period of time. …

What is the difference between cash flow and income statement?

A cash flow statement shows the exact amount of a company’s cash inflows and outflows over a period of time. The income statement is the most common financial statement and shows a company’s revenues and total expenses, including noncash accounting, such as depreciation over a period of time.

What do you mean by current assets and fixed assets?

Current assets are short-term assets that are typically used up in less than one year. Current assets are used in the day-to-day operations of a business to keep it running. Fixed assets are long-term, physical assets, such as property, plant, and equipment (PP&E).

What is the difference between civil law and criminal law?

Criminal law cases are only conducted through the criminal court system. In contrast, civil laws deal with the private rights of individuals. Civil laws are applied when an individual has had his or her rights violated or when individuals have disputes with other individuals or organizations.