Describe income statement the balance sheet and the statemen

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

Solution

Income Statement : The income statement of a company shows its revenue, expenses, cash accounting and Non cash accounting such as depericiation, and profit or loss over a time period.

Cash Flow Statement : The Cash Flow Statement shows the source of company\'s cash and its use over a specefic period of time. It just shows accounts receivable and account payable but it doesn\'t include non-cash accounting such as depericiation etc. It used to determine the liquidity of comapany that can be used to adjust the bills of a company.

Balance Sheet : Balance Sheet shows assets, liabilities and shareholder\'s equity of a company. It also include income statement and cash flow statement of include.