a formal written statement of management’s plans for the future, expressed in financial terms, is a,

What is a financial statement? A financial statement is one of the most important documents for any business. This document will show you if your company has money or not, and how they are going to use it in the future. Financial statements can also tell you everything about your company’s assets, liabilities, and equity which are all really important! Understanding Financial Statements A financial statement is one of the most important documents for any business. This document will show you if your company has money or not, and how they are going to use it in the future. Financial statements can also tell you everything about your company’s assets, liabilities, and equity which are all really important!  What is a balance sheet? A balance sheet provides an overview of everything that belongs to a person or organization at a specific date (usually near the end of each fiscal year).  It summarizes what we own (assets), what others owe us(liabilities) and our shareholding in capital (equity). Assets include cash on hand, property owned by the firm as well as investments made with borrowed funds.