Financial statements are principal means through which financial information is communicated to those outside an enterprise. Financial statement that measures a company’s financial performance over a specific accounting period. The three basic financial statements are the (1) balance sheet, (2) income statement; and (3) cash flow statement. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year.