Financial Statements
Financial statements are formal records that summarize the financial activities and position of a business, person, or other entity. They provide a structured overview of financial performance, including income, expenses, assets, liabilities, and equity, typically prepared according to accounting standards like GAAP or IFRS. These documents are essential for stakeholders such as investors, creditors, and management to make informed decisions.
Developers should learn about financial statements when working in fintech, e-commerce, or any role involving financial data analysis, as they enable understanding of business health and compliance. For example, in building financial software, APIs for banking, or data visualization tools, knowledge of financial statements helps in accurately modeling and reporting financial metrics. It's also crucial for roles in startups or corporate settings where developers need to interpret financial data for strategic decisions.