FINANCIAL REPORT Meaning and
Definition
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A financial report refers to a comprehensive document that summarizes the financial activities, performance, and outcomes of an individual, organization, or business entity. It provides a detailed overview of the financial position by presenting key financial data and statistics in a structured manner for the intended users.
Typically prepared by accountants, financial reports include essential information such as income statements, balance sheets, cash flow statements, and statements of changes in equity. These reports primarily focus on presenting the financial results and trends over a specified period, often monthly, quarterly, or annually. They are crucial in assessing the financial health, profitability, and overall performance of an entity.
Financial reports serve numerous purposes, serving as a tool for internal decision-making, external communication to stakeholders such as investors, lenders, and regulators, and for legal and regulatory compliance. The information presented in financial reports allows stakeholders to evaluate an entity's financial stability, the effectiveness of its operations, and its ability to generate profits and cash flows. Additionally, these reports enable comparisons with previous periods, industry averages, and competitors, aiding in benchmarking and performance analysis.
In summary, financial reports serve as a fundamental resource for understanding and evaluating the financial performance and position of an entity. They provide a comprehensive snapshot of financial activities, aiding in decision-making, financial analysis, and communication with various stakeholders.
Common Misspellings for FINANCIAL REPORT
- dinancial report
- cinancial report
- vinancial report
- ginancial report
- tinancial report
- rinancial report
- funancial report
- fjnancial report
- fknancial report
- fonancial report
- f9nancial report
- f8nancial report
- fibancial report
- fimancial report
- fijancial report
- fihancial report
- finzncial report
- finsncial report
- finwncial report
- finqncial report
Etymology of FINANCIAL REPORT
The word "financial" is derived from the Late Latin word "financiarius", which means "pertaining to money or finances". This Latin term was further derived from "finis", meaning "end" or "boundary", as money was often related to settlement or payment.
The word "report" comes from the Old French term "reporter", which means "to recount" or "to give an account". This latter term finds its roots in the Latin word "reportare", composed of "re-" (meaning "back") and "portare" (meaning "to carry"). Hence, the word "report" implies the act of carrying information back or recounting it.
Therefore, the etymology of the compound term "financial report" connects the idea of finances or money with providing an account or giving information.
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