Types of Financial Statements The end result of the accounting process is to produce financial statements. The income statement, the balance sheet, and the statement of cash flows are explained in this chapter. Financial statements are provided in a firm's annual report to relevant outside users such as stockholders, potential investors, creditors, and government agencies. Each statement has its own distinct format and can be customized to fit the reporting needs of various organizations. Hover your cursor over each item on the left to read the statement describing the activities reported on the three financial statements listed. Click and drag each activity to the correct financial statement under the correct company financial status in the table on the right Profitable Unprofitable company Financially healthy Financially failing company Income statement Net income bottom Net loss bottom line line Balance sheet Statement of cash Inward flow of cash Outward flow of cash flow