Monday, February 16, 2009

Financial reports

There are three financial reports that are made available to investors, namely:

1. Income statement
2. Balance sheet
3. Cash flow statement

Income statement tells you whether a company operated at a profit or a loss for the financial period. It does not measure how much the money a company received and paid during the financial period.

Balance sheet tells you the value of things a company owns and the amounts it owes on a single day, usually on the last day of the reporting period.

Cash flow statement measures cash, it tells you how much of cash a company took in and paid out during the period.

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