A-Z of Business Terms

Financial records

Formal documents representing a business’ transactions and financial standing. The main documents are:

  • Statement of Financial Position (Balance Sheet) – a snapshot of a business’ financial condition
  • Income Statement (Profit & Loss Statement) – a presentation of the income and expense items within a specific period resulting in the final profit or “bottom line”
  • Statement of Cash Flows – a presentation of a business’ cash inflows and outflows. The two financial statements above are used together to work out the cash flow within operating, investing and financing activities.

August 11, 2016 16:45