What is Financial Statement in Retail? Explained

A financial statement in retail is a formal record that presents the financial activities and position of a business over a specific period. It typically includes three key statements: the income statement, the balance sheet, and the cash flow statement. The income statement details the revenue, expenses, and profit or loss, providing insights into the operational performance. The balance sheet outlines the assets, liabilities, and equity, reflecting the financial position at a specific point in time. The cash flow statement tracks the cash inflows and outflows, demonstrating how changes in the balance sheet and income statements affect cash and cash equivalents. Financial statements are crucial for assessing the financial health and performance of a retail business.