Changes

A '''financial statement''' (or '''financial report''') is a record of the financial activities of a business or other entity.

A '''financial statement''' (or '''financial report''') is a record of the financial activities of a business or other entity.

In the private sector (including non-profit/not-for-profit entities) there are four basic financial statements:  the '''balance sheet''', the '''income statement''', the '''statement of retained earnings''', and the '''statement of cash flows''' (in some entities different terms may be used).  The statements (including the format) may be specified by law or regulation.  Larger companies will also include extensive footnotes (some of which are required by law or regulation) as well as a management discussion and analysis of their contents.

In the private sector (including non-profit/not-for-profit entities) there are four basic financial statements:  the '''balance sheet''', the '''income statement''', the '''statement of retained earnings''', and the '''statement of cash flows''' (in some entities different terms may be used).  Of the four, only the balance sheet represents activities '''''at a single point in time''''' (usually as of the end of the entity's [[fiscal year]]) whereas the other statements represent activities '''''during a period of time''''' (usually an entire fiscal year).

 

The statements (including the format) may be specified by law or regulation.  Larger companies will also include extensive footnotes (some of which are required by law or regulation) as well as a management discussion and analysis of their contents.

Governmental entities have similar statements, but often differ due to specific and unique requirements.

Governmental entities have similar statements, but often differ due to specific and unique requirements.

==Balance Sheet==

==Balance Sheet==

The '''balance sheet''' summarizes the financial balances of the entity as of a specific period in time (usually as of the end of the entity's [[fiscal year]]).

The '''balance sheet''' summarizes the financial balances of the entity.

Assets are listed first, followed by liabilities; the difference between the two is the '''equity''' or '''net worth''' of the entity.

Assets are listed first, followed by liabilities; the difference between the two is the '''equity''' or '''net worth''' of the entity.