There are three types of financial statements for businesses: income statement, balance sheet and cash flow statement. Each of these financial statements shows a different aspect of the business.

Nearly every financial crisis can be traced back to a foundation of weak balance sheets that cracked under the pressure of excessive debt. Companies, households, and governments load up on debt during ...

Even though the income statement normally attracts the most attention from investors, the balance sheet is the true starting point for understanding a company’s financial position. It shows how much a ...

To understand what a provisional balance sheet is, it first helps to explain how a balance sheet works. Balance sheets are financial statements that businesses use. They provide information about the ...

Now let's take a closer look to see how strong this balance sheet is by analyzing it with some common balance sheet ratios. There are about a half-dozen different ratios we can use to determine a ...

What does it mean when a company has a "fortress-like" balance sheet? Photo: Frank Kovalchek via Wikimedia Commons. Nearly every financial crisis can be traced back to a foundation of weak balance ...