What is your understanding of financial statements. How are three related to each other.

Question

Accepted Answer

Financial statements are documents that provide information about a company's financial performance and position.

Financial statements include the income statement, balance sheet, and cash flow statement.
The income statement shows a company's revenues and expenses over a period of time, resulting in net income or loss.
The balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.
The cash flow statement shows how cash is generated and used by a company during a specific period.
These statements are interconnected as the net income from the income statement flows into the equity section of the balance sheet, and changes in cash from the cash flow statement impact the cash balance on the balance sheet.

Top Wells Fargo Investment Banking Analyst interview questions & answers