The main financial statements include the income statement, the balance sheet, and the cash flow statement. Each of these documents serves a unique purpose:
- Income Statement: Shows the company's revenues and expenses over a specific period, highlighting its profitability. - Balance Sheet: Provides a snapshot of the company's assets, liabilities, and shareholders' equity at a particular point in time. - Cash Flow Statement: Illustrates the cash inflows and outflows, giving insight into the company’s liquidity and financial stability.
