Financial Statements
Financial Statements are the final result, or summary of the
Journals. All the detailed information from all of the transactions you
have completed are summarized, totaled and presented in a "Snap
Shot" view of your business. Bank Managers, Lending Officers and
potential Investors will view your Financial Statements on a regular
basis to determine where your business has been, and where it is
going.

The Financial Statements consist of three major components:
Balance Sheet, Income Statement, and, Statement of Retained
Earnings or Owner's Equity. The Balance Sheet outlines what you
own (Assets), what you owe (Liabilities) and what you are worth
(Difference between Assets and Liabilities). The Income Statement
shows what you earned (Gross Income) and what you spent
(Expenses). The Statement of Retained Earnings or Owner's
Equity shows the value of your business. The statements show
where the money came from, (or went) by showing the trail in the
ups and downs of your Equity.