Both involve a company’s finances, but their differences are significantReviewed by Gordon ScottFact checked by Pete RathburnBalance Sheet vs. Profit and Loss Statement: An OverviewThe balance sheet ...

The transaction details contained in the general ledger are compiled and summarized at various levels to produce a trial balance, income statement, balance sheet, statement of cash flows ...

Data found in the balance sheet, the income statement, and the cash flow statement are used to calculate important financial ratios that provide insight into the company’s financial performance.

Cash flow statements reveal money flow in/out of a business, divided into operations, investments, and financing. Operating cash flow reflects the cash transactions from core business activities.