Describes the sources and uses of cash for a reporting period. The cash flows are classified as being caused by operating, investing, and financing activities. The statement also reports the beginning, ending and change in cash. Revenues are the inflows of assets received in exchange for goods or services provided to customers as part of the operations of the business. Expenses are the outflows of assets as a result of providing products and service to customers.
Assets are the properties or economic resources owned by the business.
Common characteristic is the ability to provide probable future economic benefits to the business. Liabilities are obligations of a business or organization, or claims against assets. A common characteristic is capacity to reduce future assets or to require future services or products. The wording on financial statements well change due to the form of the organization. A proprietorship's and most partnership's balance sheets list the equity balance beside the owner's name.