Mastering Financial Statements

The purpose of financial statements is to provide useful information for finance decision-making.

The balance sheet contains information of assets, liabilities, and stockholders equity.

The income statement shows the performance of the company during a specific period.

<p>The statement of cash flows indicates how the firm generated cash flows from its operations.</p> Signup and view all the answers

<p>The purpose of the statement of retained earnings is to reconcile the retained earnings number in the balance sheet.</p> Signup and view all the answers