What are the key financial statements I should know about?

What are the key financial statements I should know about?

The three key financial statements are the income statement, balance sheet, and cash flow statement. Would you like to know more about each?

Yes, can you explain the income statement?

The income statement shows a company's revenues and expenses over a specific period, indicating profitability. It includes items like sales, cost of goods sold, and net income.

What about the balance sheet?

The balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. It follows the equation: Assets = Liabilities + Equity.

And the cash flow statement?

The cash flow statement tracks the flow of cash in and out of a business, categorized into operating, investing, and financing activities. It helps assess liquidity.