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Financial statements are formal records of the financial activities and position of a business, person, or other entity. They provide a summary of a company's financial transactions, including its revenue, expenses, assets, liabilities, and equity, over a specific period of time. These statements are prepared in accordance with accounting standards and principles to ensure consistency, transparency, and comparability. Financial statements are crucial for various stakeholders, including management, investors, creditors, regulatory authorities, and others, as they offer valuable information for decision-making, performance evaluation, and financial analysis. These statements are typically audited by external auditors to ensure their accuracy and compliance with accounting standards.

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