Financial Statement Legal Meaning and Definition

Here is a simplified definition of the legal term Financial Statement.

Financial Statement (noun)

A financial statement is a detailed record that outlines an organization's financial activities and conditions, typically over a specific period. It generally includes three main parts - the balance sheet (showing the company's assets, liabilities, and shareholders' equity), the income statement (providing information about the company's revenues and expenses), and the statement of cash flows (documenting the inflow and outflow of cash). These financial reports are essential tools for analyzing the performance and financial health of a company.