You are on page 1of 1

THREE STATEMENT MODEL TERMINOLOGIES

THREE STATEMENT MODEL


A three statement model links the income statement, balance sheet, and cash flow statement into one
dynamically connected financial model. Three statement models are the foundation on which more advanced
financial models are built.
 
INCOME STATEMENT
An income statement is one of the financial statements of a company and shows the company's revenues and
expenses during a particular period. It indicates how the revenues are transformed into the net income or net
profit.
 
BALANCE SHEET
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at
a specific point in time. It is a financial statement that provides a snapshot of what a company owns and
owes, as well as the amount invested by shareholders
 
CASH FLOW STATEMENT
A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a
company receives from its ongoing operations and external investment sources. It also includes all cash
outflows that pay for business activities and investments during a given period.
 
 

You might also like