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Financial Statement - Class 12 Account Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. A Financial statement includes: Balance sheet  – It is a report of a company’s financial worth in terms of book value. Income statement  – This breaks down the revenue a company earned against the expenses involved in its business to provide net income profit or loss. Cash flow statement  – it is used to analyze the value of a company. Investors and financial analysts rely on financial data to analyze the performance of a company and make predictions about its future direction of the company’s stock price. The Balance Sheet provides an overview of a company’s assets, liabilities, and owner’s or stockholders’ equity on a given date. The date at the top of the