FINANCIAL STATEMENTS

Aspect

Balance Sheet

Income Statement

Cash Flow Statement

Statement of Owner's Equity

Main Purpose

What you own (assets), what you owe (liabilities), and what you invested (equity).

Shows income, expenses and net income (profit or loss) during a specific period.

Cash flowing in and out from sales and expenses (operating activities), investments, and financing.

Explains changes in owner's equity during a period.

Presentation Date

Snapshot at a specific moment, usually at the end of an accounting period.

Covers a specific period, such as a month or a year.

Covers a specific period, usually annually or quarterly.

Covers a specific period, usually annually or quarterly.

Key Elements

Assets, liabilities, and equity.

Revenue, cost of goods sold, operating expenses, net income.

Cash inflows and outflows from operations, investments, and financing.

Capital contributions, withdrawals, retained earnings, and changes in income and expenses.

Format

Assets = Liabilities + Equity

Revenue - Costs = Net Income

Cash Inflows and Outflows

Initial Balance + Contributions - Withdrawals +/- Earnings or Losses = Ending Balance

Update Frequency

Generally at the end of each accounting period.

At least once a month, usually quarterly or annually.

At least once a month, usually quarterly or annually.

At least once a month, usually quarterly or annually.

Significance for Investors

Offers an overview of the financial strength and position of the company.

Shows the profitability of the company during a specific period.

Helps assess the company's ability to generate cash and its financial strength.

Details how the owner's equity has changed during the period.