Define the 3 financial statements and state the difference between them

Question

Accepted Answer

The 3 financial statements are Income Statement, Balance Sheet, and Cash Flow Statement. They differ in their focus and purpose.

Income Statement shows a company's revenue and expenses over a period of time
Balance Sheet shows a company's assets, liabilities, and equity at a specific point in time
Cash Flow Statement shows a company's inflow and outflow of cash over a period of time
Income Statement focuses on profitability, while Balance Sheet focuses on solvency and liquidity
Cash Flow Statement helps in understanding a company's ability to generate cash and its cash management practices

Accepted Answer

The 3 financial statements are balancesheet, cash flow statements and incom tax statements.

Balancesheet show company's assets,equity and liabilities at a specific point in time period.

Cash flow statements show company's all transition and all over cash over a time period.

Incom tax statements show the profit and loss of company's in a lime period.

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