Question

*You have a company's balance sheet, its income statement, and its statement of cash flows. Which would you refer to if you wanted to know if a company made or lost money last year? If you wanted to find out how much debt the firm had used to finance its assets? If you wanted to know why its cash balance had changed over the past year?​

Answer 1

If I wanted to know if a company made a profit or lost money last year I would refer to the Income statement.

If I wanted to find out how much debt the firm had used to finance its assets I would refer to the balance sheet.

If I wanted to know why it’s cash balance had changed over the past year I would refer to the cash flow statement.