The three important financial statements prepared by accountants are
A) ledger, journal, and trial balance.
B) cash budget, capital budget, and master budget.
C) revenue summary, expense summary, and consolidation statement.
D) balance sheet, income statement, and statement of cash flows.

Question

Quizplus · Accepted Answer

The balance sheet, income statement, and statement of cash flows are the three most important financial statements prepared by accountants. The balance sheet provides a snapshot of a company's financial position at a specific point in time, while the income statement shows a company's revenues and expenses over a period of time, usually a year. The statement of cash flows provides information about a company's cash inflows and outflows during a period, as well as changes in its cash balance. These three statements are crucial for investors, creditors, and other stakeholders in assessing a company's financial health and making informed decisions.

The Three Important Financial Statements Prepared by Accountants Are