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from Part I - Principles and Core Concepts
Published online by Cambridge University Press: 23 January 2025
In this chapter we review an important source of information about companies: financial statements. Financial statements are reports published by businesses and other organizations that provide investors and other stakeholders with information about a firm’s assets, liabilities, existing and potential cash flows, and so on. The core financial statements, which are usually published quarterly and annually, are the balance sheet, the income statement, and the statement of cash flows. Financial statements provide information about a firm’s current and past financial state, information that is key in figuring out a firm’s current economic value and the outlook on how the firm may perform in the future.
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