What Is a Financial Statement? Definition and Guide - Shopify (2024)

FAQs

What Is a Financial Statement? Definition and Guide - Shopify? ›

A financial statement is a document that summarizes an individual or business's financial position, including assets, liabilities, and net worth.

A financial statement is a report that shows the financial activities and performance of a business. It is used by lenders and investors to check a business's financial health and earnings potential.

You can access a list of finances reports on the Reports page by filtering by Category > Finances. In the list of reports, you can access the Summary report page, and other key reports.

A personal financial statement is a spreadsheet that details the assets and liabilities of an individual, couple, or business at a specific point in time. Typically, the spreadsheet consists of two columns, with assets listed on the left and liabilities on the right.

Answer and Explanation: C) Financial statements are documents that report on a business in monetary terms, providing information to help people make informed business decisions.

"The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions." Financial statements should be understandable, relevant, reliable and comparable.

Does Shopify directly report my sales to the IRS? No, Shopify itself does not report your sales directly to the IRS. However, the payment processors integrated with Shopify, like Shopify Payments, PayPal, or Stripe, are required to report your sales to the IRS if they exceed certain thresholds.

You can view financial information provided by Shopify in a structured way. From your Shopify homepage, go to Analytics > Reports. In the Finances section, click Finances summary.

From your Shopify admin, go to Settings > Billing. In the Statement of charges section, click View summary. In the Statement of charges page, select a time frame using the date range drop-down menu to view all charges within that time frame. Data is available only for the last 90 days.

What is an example of a financial statement? ›

The income statement, balance sheet, and statement of cash flows are required financial statements.

The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, revenues, and costs, as well as its cash flows from operating, investing, and financing activities.

The line items in a financial statement will vary from one corporation to the next, but the most common among them are revenues, costs of goods sold, taxes, cash, marketable securities, inventory, short-term debt, long-term debt, accounts receivable, accounts payable, and cash flows from investing, operating, and ...

The major elements of the financial statements (i.e., assets, liabilities, fund balance/net assets, revenues, expenditures, and expenses) are discussed below, including the proper accounting treatments and disclosure requirements.

The income statement will be the most important if you want to evaluate a business's performance or ascertain your tax liability. The income statement (Profit and loss account) measures and reports how much profit a business has generated over time. It is, therefore, an essential financial statement for many users.

There are four basic types of financial statements used to do this: income statements, balance sheets, statements of cash flow, and statements of owner equity.

Financial statements are documents that convey a company's business activities and financial performance. As the U.S. Securities and Exchange Commission (SEC) succinctly put it, “They show you where a company's money came from, where it went, and where it is now.”

Financial statements are written records that illustrates the business activities and the financial performance of a company. In most cases they are audited to ensure accuracy for tax, financing, or investing purposes.

The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.

The statement of financial position for a company is often referred to as the balance sheet. It is used to report the assets, liabilities, and equity of a business on a given date – a summary, or snapshot, of its overall value at a certain point in time.