Financial statements - 1

These 3 statements provide a comprehensive view of any organisation's financial health and are interconnected to give a complete picture.

Some of the terms that form part of these statements.

Income Statement

• Revenue or Sales = The total amount of money coming into the business
• Costs or Expenses = The money organisation spent on things to run the business
• Profit or Loss = Revenue less Costs = the money left or lost in the business

Balance Sheet

Cash Flow

Cash generated or used from

• Operating activities – Profit/loss from the day-to-day business activities
• Investing activities – Product development, Capex, Investment in markets/deposits
• Financing activities – Fund raise (Equity, Debt), Repayments, Dividends