The three most important financial statements in accounting are the balance sheet, income statement, and cash flow statement.
- The balance sheet shows a company’s assets, liabilities, and equity at a specific point in time.
- The income statement shows a company’s revenues, expenses, and profits or losses over a period of time.
- The cash flow statement shows a company’s cash inflows and outflows over a period of time and helps to assess its liquidity and financial health.