Financial Statement

Financial statements refer to the written records of monetary transactions of an individual or an organisation. It is basically important to check the financial position of the company. For a business, financial statements may include income, cash flow, profit and loss statements and balance sheets. For an individual, financial statements generally refer to bank statements that list withdrawals (money that you spend) and credits (money that you receive) just like a passbook. These statements are examined by lenders to determine your income and expenses.