Ceejay Villarico

BMMA21B

Financial statements are important documents that provide information about a company's
financial performance and position. There are four main types of financial statements; Income
Statement, a statement which shows a company's revenue, expenses, and net income over a specific
period, such as a month, quarter, or year. It helps assess the profitability of a company by comparing its
revenues and expenses; Balance Sheet, a balance sheet provides a snapshot of a company's financial
position at a specific point in time. It lists the company's assets, liabilities, and shareholders' equity. It
shows what the company owns, owes, and the net worth; Cash Flow Statement, statement that tracks
the flow of cash in and out of a company during a specific period. It categorizes cash inflows and
outflows into operating activities (day-to-day business operations), investing activities (buying or selling
assets), and financing activities (raising or repaying funds); Statement of Shareholders' Equity, a
statement that shows the changes in shareholders' equity over a specific period. It includes information
about dividends, stock issuances, and changes in retained earnings. It helps assess the financial health
and ownership structure of a company.

These financial statements are crucial for investors, creditors, and other stakeholders to evaluate the
financial performance, stability, and growth potential of a company. They provide valuable insights into
revenue generation, expenses, liquidity, and the overall financial health of a company.