GENERAL KNOWLEDGE

Detailed explanation-1: -We find that while the balance sheet is by far the more common lead-in financial statement, company size and financial performance are key factors in determining which financial statement, the statement of operations or the balance sheet, is presented first in a complete set of financial statements.

Detailed explanation-2: -In summary, net income from the income statement flows to the top of the cash flow statement, which flows into the bottom of the balance sheet as retained earnings. Net income also impacts cash, which is reported at the bottom of the cash flow statement, which then flows into the top of the balance sheet.

Detailed explanation-3: -Financial statements are usually meant to provide the financial data so that the investors, shareholders, creditors, and the government can utilise them to derive meaningful information about the status of the business or company.