Financial Statement Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

1. What financial statements do joint-stock companies prepare?

2. What are the objectives of financial statements?

3. What is an income statement for a joint-stock company?

4. What is a retained earnings statement?

5. Define the term "reserve."

Frequently Asked Questions

What are the 5 Financial Statements?

There are five types of Financial Statements: the income statement, the statement of financial position, the statement of change in equity, the Cash Flow statement, and the notes to Financial Statements.

Who use Financial Statements?

Companies with strong balance sheets are structured to support their business goals and maximize profitability. A company with a strong balance sheet will have most of the following characteristics: intelligent use of Working Capital, positive Cash Flow, a balanced capital structure, and income-generating assets.

Who use Financial Statements?

Who use Financial Statements?

Why do companies use Financial Statements?

Financial Statements are the primary source of information about a company’s income, expenses, profitability, and debt.

How do you know if a company is profitable?

To determine a company’s financial health, examine its income statement. It will show you the company’s sales revenue, merchandise expenses and operating charges, as well as its net income.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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