Types of Financial Statements The result of the accounting process is several financial statements. The income statement, the balance sheet, and the statement of cash flows are the best known examples of financial statements. Financial statements are provided to stockholders and potential investors in a firm's annual report as well as to other relevant outsiders such as creditors, government agencies, and the Internal Revenue Service. It is important to recognize that not all financial statements follow precisely the same format. The fact that different organizations generate income in different ways suggests that when it comes to financial statements, one size definitely does not fit all. 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. Net income bottom line resulting in surplus income. Net loss bottom line. The company's revenues are greater than the costs The company's revenues are less than the costs resulting in deficit income. Financially healthy - A financial snapshot analysis shows expansion of assets since the previous year. Financially failing - A financial snapshot analysis shows contraction of assets since the previous year.