financial statement

  

Definition

Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position. The three basic financial statements are the (1) balance sheet, which shows firm's assets, liabilities, and net worth on a stated date; (2) income statement (also called profit & loss account), which shows how the net income of the firm is arrived at over a stated period, and (3) cash flow statement, which shows the inflows and outflows of cash caused by the firm's activities during a stated period. Also called business financials.

Use financial statement in a sentence

  • We had prepared the financial statement which was presented to the senior financial analyst who reviewed and ensured it was correct.

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  • Our company annually distributes a financial statement to all employees and shareholders to review the welfare of the company's financials.

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  • After looking at my financial statement, I had no idea what caused me to lose so much money over the year.

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