Question

What are three key financial statments​

Answer 1

Answer: Three key financial statements that are commonly used to evaluate a company's financial performance are the balance sheet, income statement, and cash flow statement.

Explanation: Three key financial statements that are commonly used to evaluate a company's financial performance are the balance sheet, income statement, and cash flow statement.

The balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time. It shows what a company owns (assets) and what it owes (liabilities), as well as the difference between the two (equity). The balance sheet can provide valuable insights into a company's liquidity, solvency, and financial health.

The income statement is a financial statement that shows a company's revenues, expenses, and profits over a specific period of time, such as a quarter or a year. It provides information on how much money a company is bringing in, how much it is spending, and how much it is earning. The income statement can be used to evaluate a company's profitability and efficiency.

The cash flow statement is a financial statement that shows how much cash a company is generating and how it is being used. It provides information on cash inflows (revenues) and outflows (expenses), as well as the net change in cash over a specific period of time. The cash flow statement can be used to evaluate a company's liquidity and financial stability.

Together, these three financial statements provide a comprehensive view of a company's financial performance and can be used by investors, analysts, and management to make informed decisions about the company's future. They also help to identify potential problem areas and take actions to address them.

Answer 2

Three key financial statements that are commonly used to evaluate a company's financial performance are:

Income Statement (also known as the Profit and Loss Statement): This statement shows a company's revenues, expenses, and net income (or loss) over a specific period of time, typically a quarter or a year. It is used to assess a company's profitability and to compare it with other companies or with its own historical performance.

Balance Sheet: This statement provides a snapshot of a company's financial position at a specific point in time. It shows a company's assets, liabilities, and equity. It is used to evaluate a company's liquidity (i.e. its ability to meet short-term obligations), solvency (i.e. its ability to meet long-term obligations), and financial leverage (i.e. the extent to which a company is financed by debt).

Cash Flow Statement: This statement shows the cash inflows and outflows of a company over a specific period of time, typically a quarter or a year. It is used to evaluate a company's ability to generate cash and to assess its liquidity and financial flexibility. The cash flow statement is divided into three sections: operating activities, investing activities and financing activities.

Together these financial statements provide a comprehensive view of a company's financial performance and position, which can be useful for investors, lenders, and other stakeholders.

Step-by-step explanation: