Financial statements (or financial reports) are formal records of the financial activities and position of a business.

Relevant financial information is presented in a structured manner and in a form which is easy to understand. They typically include four basic financial statements accompanied by a management discussion and analysis.

A balance sheet or statement of financial position, reports on a company's assets, liabilities, and owners equity at a given point in time.

An income statement—or profit and loss report (P&L report), or statement of comprehensive income, or statement of revenue & expense—reports on a company's income, expenses, and profits over a stated period of time. A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the stated period.

A statement of changes in equity or equity statement, or statement of retained earnings, reports on the changes in equity of the company over a stated period of time.

A cash flow statement reports on a company's cash flow activities, particularly its operating, investing and financing activities over a stated period of time.