The main financial statements of a business include:
A)Balance Sheet,Profit & Loss Statement,and the Statement of Cash Flows
B)Tax Return,Balance Sheet,Profit & Loss Statement,and the Statement of Cash Flows
C)Balance Sheet,Profit & Loss Statement,and Notes to the Financial Statements
D)Tax Return,Statement of Cash Flows,and Balance sheet

Question

Quizplus · Accepted Answer

The balance sheet shows the assets, liabilities, and equity of a business at a specific point in time. The profit & loss statement (also known as the income statement) shows the revenue, expenses, and net income or loss of a business for a specific period of time. The statement of cash flows shows the cash inflows and outflows of a business for a specific period of time and is divided into operating, investing, and financing activities. Together, these three financial statements provide a comprehensive picture of a business's financial health and performance.

The Main Financial Statements of a Business Include