The main financial statements prepared from financial accounts include:
Income Statement The income statement, also known as the profit and loss statement, shows the company’s revenues and expenses over a specific period. It provides insights into the company’s profitability.
Balance Sheet The balance sheet presents the company’s financial position at a specific point in time. It lists the company’s assets, liabilities, and equity, providing a snapshot of its financial health.
Cash Flow Statement The cash flow statement details the inflows and outflows of cash during a period. It is divided into operating, investing, and financing activities, showing how cash is generated and used.