A financial statement is a document that provides an organized view of a company’s financial activities, such as its income and expenses, liabilities, assets, and equity. By reviewing financial statements, investors, lenders, and others can better understand the financial health of a business and make informed decisions about investments or loans. Financial statements provide users with insight into the past, present, and potential future performance of a business. They can also be used to compare different companies in order to assess their strengths and weaknesses.