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Financial Statement

A financial statement (or financial report) is a formal record of the financial activities of a business, person. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements:

• Balance Sheet: also referred to as statement of financial position or condition, reports on a company's assets, liabilities and ownership/equity at a given point in time.
• Income statement: also referred to as Profit and Loss statement (or a "P&L"), reports on a company's income, expenses, and profits over a period of time. Profit & Loss account provide information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state. 

For large corporations, these statements are often complex and may include a set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.