GENERAL KNOWLEDGE

Detailed explanation-1: -Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time. Cash flow statements show the exchange of money between a company and the outside world also over a period of time.

Detailed explanation-2: -The balance sheet provides an overview of assets, liabilities, and shareholders’ equity as a snapshot in time. The income statement primarily focuses on a company’s revenues and expenses during a particular period.

Detailed explanation-3: -This will be followed by the two essential financial statements: The balance sheet (sometimes also known as a statement of financial position) The income statement (which may include the statement of retained earnings or it may be included as a separate statement)

Detailed explanation-4: -Financial statements provide a snapshot of a corporation’s financial health, giving insight into its performance, operations, and cash flow. Financial statements are essential since they provide information about a company’s revenue, expenses, profitability, and debt.

Detailed explanation-5: -Balance sheet. Also known as a statement of financial position, or a statement of net worth, the balance sheet is one of the four important financial statements every business needs. Income statement. Cash flow statement. Statement of owner’s equity.