Historical Financial Statements refer to financial reports, such as the balance sheet, income statement, and statement of cash flows, that summarize the financial performance and position of an entity for a prior period of time. These statements provide a record of the company’s financial activities and results, typically over a fiscal quarter or year. For instance, a historical income statement for the previous year would show the revenues, expenses, and net income or loss incurred by the business during that year. An example use in a sentence is: 'Investors analyzed the historical financial statements of the company to understand how it has performed over the past three years.' The insights gained from these historical records are invaluable for decision making, comparison of past and present operations, and understanding trends over time. Historical Financial Statements are essential in financial analysis, providing a foundation for forecasting future results and assessing the organization’s financial health.