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Investment Banking Prep

Accounting · EV Bridge · Valuation · M&A · Private Equity
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AccountingEasy
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Question
What are the three financial statements and what does each show?
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AccountingEasy
№ 001 / 050
Answer
Income Statement: revenues, expenses, and net income over a period (accrual basis).
Balance Sheet: snapshot of assets, liabilities, and equity at a point in time. Assets = Liabilities + Equity.
Cash Flow Statement: reconciles net income to actual cash via CFO, CFI, CFF over a period.
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