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Three Most Important Financial Statements

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The three most important financial statements are an income statement, statement of cash flows, and a balance sheet. Each of the main three financial statements tells a different story. Income statements show how much revenue your company made over a exact time period, which may be different than cash in the door. You may have people who still owe you money, which won’t usually show up on that statement. A statement of cash flows shows how much cash you took in. A business may have made a lot of income but spent all that cash buying equipment, so the company would show up as "broke" varying the cost of said equipment. Balance Sheets show the wealth in assets and debts in liabilities of a company along with how much its worth in equity. Your

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