Which item is included in financial statements?

Financial statements provide a formal record of the financial activities and position of a business, organization, or individual. They typically include key components such as the balance sheet, income statement, and cash flow statement. These documents summarize the financial condition of an entity, detailing assets, liabilities, revenues, expenses, and equity.

Summarized financial conditions, therefore, are fundamental to financial statements as they encapsulate the overall economic standing of an organization at a specific point in time or over a specific period. This encompasses vital information that stakeholders—such as investors, creditors, and management—use to assess the performance and financial viability of a business.

On the other hand, items like employee reviews, market research data, and customer satisfaction scores, while important for operational and strategic decision-making, are not included in formal financial statements. They provide qualitative insights that can influence management strategies but do not reflect the quantitative financial health of a business.