Walk me through the three financial statements.

Question

Accepted Answer

The three financial statements are the income statement, balance sheet, and cash flow statement.

The income statement shows a company's revenue and expenses over a period of time.
The balance sheet shows a company's assets, liabilities, and equity at a specific point in time.
The cash flow statement shows a company's inflows and outflows of cash over a period of time.
The income statement and cash flow statement are linked through net income, which is used to calculate cash flow from operations.
The balance sheet and cash flow statement are linked through changes in cash and cash equivalents.
Financial statements are important for investors, creditors, and management to assess a company's financial health and performance.

Accepted Answer

Balance sheet,and cash flow statement.the income statement

Popular interview questions of Finance Executive