Glossary
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      Financial Statement

      A financial statement is a formal record of the financial activities and position of a business, person, or other entity.

      A financial statement is a formal record of the financial activities and position of a business, person, or other entity. For retailers, financial statements are crucial as they provide detailed information about the company's revenue, expenses, profitability, and financial health.
       
      Retailers typically prepare them through a systematic process of accounting. Key components of financial statements include the balance sheet, income statement (or profit and loss statement), and cash flow statement. These documents are compiled using data from the retailer's accounting records.
       
      Financial statements are important for retailers because they:
      1. Offer insights into the financial performance and stability of the business.
      2. Are used to make informed business decisions regarding investments, cost management, and growth strategies.
      3. Provide necessary information to stakeholders, investors, creditors, and tax authorities.