What is a financial statement?

Definition of Financial Statement

Generally, the term financial statement could be referring to:

  • General-purpose, external financial reports that are distributed by a company to people outside of the company
  • A more-detailed, internal financial report that remains inside of the company for use by the company's management

The external financial statements of a U.S. corporation must be prepared in accordance with U.S. generally accepted accounting principles (referred to as US GAAP).

Examples of Financial Statements

The external financial statements issued by U.S. corporations should include all of the following:

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