Financial statements

The essential items for analyzing a company’s health and viability

The financial statements are the essential items for analyzing a company’s health and viability, and they can be broken down into three categories:

the income statement, the balance sheet, and the statement of cash flows.

Financial statements are important for understanding the health of the company. While cash flow statements are important to see how much money is coming into the business, income statements are important to see how much money is going out of the business. Balance sheets are important because they show the assets and liabilities of the company.

Income Statement

– The income statement shows how much money a company has made or lost during a certain period of time.

The income statement is very important because it helps investors and other stakeholders determine the financial health of a company.

Balance Sheet

-The balance sheet shows the organisation’s assets, liabilities, and owner’s equity at a specific point in time (usually the end of an accounting period).

The balance sheet is made up of three parts:

Assets are things that have value.

Liabilities are things that have debt.

And equity is the difference between assets and liabilities.

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Cash flow statement

-A cash flow statement is a financial statement that summarises the cash flow of a business over a given period of time. The cash flow statement is sometimes referred to as “the statement of cash flows” or “statement of cash flows“.

The cash flow statement is a great way to see how well your business is doing from a financial standpoint