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Hello and welcome Hello and welcome back to Accounting Stuff. Im James and today were talking financial statements. The income statement, the balance sheet and the cash flow statement. Im going to try and explain all the basics in under eight minutes which is going to be a challenge because we have a little puppy here whos uh trying to bite my finger. So lets get started! What are financial statements? Financial statements are reports that summarize the activities and financial performance of a business. Theyre prepared at the end of each accounting period and theyre designed to give investors and lenders a feel for a businesss financial health. The three main financial statements are the balance sheet, the income statement and the cash flow statement. Now Ill explain how each of these work with an example. Tea-licious is a family-run business that produces a popular blend of black tea. Their financial year has come to a close and theyve finis
