How is everyone doing?  I hope you are finding this information helpful. 

Let’s talk about financial statements today.  There are four basic types of financial statements:  balance sheet, income statement, cash flow statement and retained earnings statement.

The balance sheet reflects the condition of a business as of a certain date or point in time, as well as the net worth.  The balance sheet lists ASSETS, LIABILITIES and EQUITY.  Assets equal (Liabilities plus Equity). 

An income statement lists revenue, expenses and the difference of the two which equals the net income.