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TeachMeFinance.com - explain financial statements financial statements -- reports that summarize a firm's accounting data and indicate its financial condition. The four basic financial statements are: the balance sheet , income statement, statement of retained earnings , and statement of changes in financial position. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.