balance sheet

Topics: Generally Accepted Accounting Principles, Financial statements, Balance sheet Pages: 1 (312 words) Published: March 17, 2014
The balance sheet, income statement and cash flow statement are closely related. Basically, a balance sheet describes a company's assets, liabilities and stockholder's equity in a specific period of time. An income statement mainly shows the net profits or loss of a company. The purpose of the income statement is to show stockholders and investors whether the company earned or lost money. A cash flow statement explains cash inflows and outflows. Each financial statement reveals a part of a company's financial condition. Stockholders and lenders will analyze a company's financial statements and determine whether the company has good value or is a good investment. The balance sheet, income statement and cash flow statement are closely related. Basically, a balance sheet describes a company's assets, liabilities and stockholder's equity in a specific period of time. An income statement mainly shows the net profits or loss of a company. The purpose of the income statement is to show stockholders and investors whether the company earned or lost money. A cash flow statement explains cash inflows and outflows. Each financial statement reveals a part of a company's financial condition. Stockholders and lenders will analyze a company's financial statements and determine whether the company has good value or is a good investment. The balance sheet, income statement and cash flow statement are closely related. Basically, a balance sheet describes a company's assets, liabilities and stockholder's equity in a specific period of time. An income statement mainly shows the net profits or loss of a company. The purpose of the income statement is to show stockholders and investors whether the company earned or lost money. A cash flow statement explains cash inflows and outflows. Each financial statement reveals a part of a company's financial condition. Stockholders and lenders will analyze a company's financial statements and determine whether the company has good value or is...
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