1: financial statement
2: income statement
3: balance sheet
4: cash flow statement
Quick Pick :
Reports of states that occupied the information in the manner of audit about income, assets, debt and cash flow is what called financial statement.
Financial statement is a money related declaration form where it’s helps to connect the money related matters.
It doesn’t matter whatever the statement connect to other if it’s a money reasonable information means it is called as financial Statement.
The financial statement information could be numbers, simple letter, normal information extra.. but it’s provided in simple and more understandable manner.
this article occupied the information about what is financial statement in the stock market. How it’s helps investors and what types of financial statement and how it’s helps investors in investing related matters.
1: financial statement
Stock investor who invest in the stock market would to determine the certain industry stock value by analysis the financial statement.
The financial statement are the one which tells all the truth about the company which contains all the information about income, asset and cash flow of the certain business.
There are three financial statement income statement, balance sheet statement and cash flow statement. Which this all statement connect with investors for the different purpose.
So let’s see what are the purpose of each financial statement which contains in Companies reports.
2: income statement
Income statement are the statement of income of certain Company.
Where every public companies file their last income on their financial statement.
Where this income Statement also called as profit and loss statement in the financial statement. Without the profits and loss statement stock investor couldn’t able to understand and know the income of the certain public industry.
Moreover investor won’t invest or bought shares in the company once the income of the company drastically go down, This show in the income statement.
Now let’s know about the balance sheet statement of the public Companies and what its purpose.
3: balance sheet
Balance sheet are the statement of assets, liabilities and equity matters. Which show the asset of the company. What are the assets company own.
And on the liabilities side it’s show about the company liabilities which the owes to grow the company.
And more importantly it’s show the equity of the company. Because equity are the very important money it’s the owners of investor money.
When the company goes bankrupt the equity is what left once the company distribute to their share holders after the sold all the asset and paid the liabilities.
Investors didn’t invest in the companies when industry have high liabilities than the assets. Which leads the company to go out of the business.
Without balance sheet statement Companies and investor couldn’t report and know the asset and liabilities of the company.
Next lets now look on cash flow statement and what it’s purpose and how it’s works.
4: cash flow statement
The cash flow statement different form the income and balance sheet statement. Cash flow statement are the statement of cash in and out of company.
Let’s say in income statement the company report it, it sold 100 products. But investors can’t know that certain Company really received the cash inside the company or not.
So the cash flow is a statement which helps the investors to know that cash are really received the company bank account or not.
Where cash flow statement main purpose is to report the how the cash does the company received on the operating of the business.
Then to show about the how much cash the particular industry received through the investing activities other than business operations.
Obviously, then it’s show how much the public industries earned money through their financial activities of the company.
More than that finally the cash flow statement shows how the industry finally have net cash on hand from the three operating, investing and financial activities.
Following these three activities, the cash flow statement not only show the income and but also the expenses through these activities.
In simple term the case flow statement shows completely how much the cash received which is got in and how much cash spend it on this activities which is cash out.
Market rule: #10139
Financial statements are the came in the market rule, which those financial statements are required from the security and exchange commission for every company to notify the investors.
If your investors and not comfortable or align investing with based on market rules please learn about how to regulate your investments under your control with use of Rule investing.