Ask a Fool: What Are Financial Statements? (BAC)

Ask a Fool: What Are Financial Statements?

Motley Fool analyst Anand Chokkavelu answers the question: What are financial statements?

These include three statements: the income statment, the balance sheet, and the statement of cash flows. Each statement provides a different glimpse into a company's financial health, but all of them are very important. A company's income statement can be very strong, but if its balance sheet is weak, as was the case with many big financial institutions such as Bank of America just a few years ago, then investors may be in for a rough ride.

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Anand Chokkavelu has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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