Financial Statements in Accounting
There are four primary financial statements used in accounting to provide a comprehensive overview of a company's financial position and performance:
- Balance Sheet: A snapshot of a company's financial position at a specific point in time, listing its assets, liabilities, and equity.
- Income Statement: A summary of a company's revenues and expenses over a specific period, showing its net income or loss.
- Cash Flow Statement: A statement that outlines the inflows and outflows of cash and cash equivalents over a specific period, helping to assess a company's liquidity and solvency.
- Statement of Changes in Equity: A statement that shows the changes in a company's equity over a specific period, including dividends, share issuances, and net income.
Additionally, there are other financial statements and reports used in accounting, such as:
- Statement of Retained Earnings: A statement that shows the changes in a company's retained earnings over a specific period.
- Notes to the Financial Statements: Explanatory notes that provide additional information about the financial statements, such as accounting policies and significant events.
These financial statements are essential for investors, creditors, and other stakeholders to assess a company's financial health and make informed decisions.
In the context of the INLEO ecosystem, understanding these financial statements can help users analyze the platform's financial performance and make informed decisions about their LEO token holdings and content creation activities.
What are financial statements used for?
What is forensic accounting?
Stop trying to fit InLeo into every answer. It doesnt apply.