We use the term financial statement to mean one of the general-purpose, external financial statements such as the income statement, balance sheet, statement of cash flows, and the statement of stockholders’ equity.

These financial statements for a U.S. company must be prepared in accordance with U.S. generally accepted accounting principles—also referred to as US GAAP.

Learn more about Financial Accounting.

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the creator of the AccountingCoach Pro which has been praised for its ability to simplify accounting in a way that anybody can understand.

Learn more about AccountingCoach Pro