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the two have the same importance and its depends on the purpose of needing and the kind of decision
the financial Statement is four Statement
Balance Sheet that's showing position of financial statement
Income Statement that's showing the result of the business
cash flow statment and statement of the change of equity
Important statement is balance sheet & Income Statement
you can't to make balance sheet without Income statement to know retain earnings
cash flow this statement not add value for other statment but showing cash flow out & in
Thanks & Regards
Balance sheet shows how much Equity and Liability company has which can give quick answer to questions such as how leveraged the company is.
Income Statement shows the profitability of the company and can give quick answer to questions such as how much did company earn during last accounting period.
Cash Flow Statement gives quick answer to questions such as what portion of the net income is collected cash.
The balance sheet (B/S, or statement of financial position) is one of the four primary financial reports (financial accounting statements) that publicly held companies must file every quarter and year. The other three are the income statement, the statement of retained earnings, and the cash flow statement (or statement of changes in financial position, or financial cash flow statement). Balance sheets for government and non profit organizations are also published periodically.
Qualified Accountants prepare the balance sheet after the close of the trial balance period, at the end of the accounting cycle. At all times during the cycle, however, balance sheet accounts for assets equal the sum of liabilities plus owners equities.
