Which financial statement is the most important?

Thanks for invitation:

I think it depends on from which view point you are seeing the financial statement.

• If you are stakeholder then you will be mostly interested in dividends so income statement is more important.
• If you are prospective investor and want in buy shares then statement of financial position is more important for you.
• If you are creditor or lender then mostly you will interested in cash flow statement to see the liquidity.

So we can say that depending upon usage each financial statement has its own importance.

Each fiscal list are important, but the statement of cash flows is a current list describes all aspects of financing, operation and investment during the fiscal year compared to the previous year and prepare a list of cash flows to show the change in the uses of cash during the two fiscal years in a row where he explains the change in the cash balance under three main sections . Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities You can prepare the statement of cash flows in two ways: The first way - the direct method where modify all operational items from an accrual basis to the cash basis. The second method, where the indirect method is to make amendments and adjustments to the accounting profit number to get to the net cash flows.

-All of financial statements  are important ,but income statement is the most important one ,that's  due yo the majority of users is likely to be the income statement,since it reveals the ability of business to generate profits.

Each report is used for another purpose. It is impossible to present a full picture of the financial condition without understanding the Balance sheet completed by P&L and use cash flow statement to identify real money flows rather than profit just on the paper.

It's depending on the kind of the decision

All Financial Statements are very important, However, some people think that Income Statement are more important because it contains the profit for the shareholders who actually agreed to start the business to earn money. However, Professionally Balance Sheet could be more important because the it reflects the increase of the shareholder wealth (the increase of their Assets and Equity) that already also contain the figure of Retained Earnings.

Statement of financial position is the most important of all financial statements.

All financial statements are equally important  and have different relevance for decision making and user/stakeholder of the financial statement. Income statement will help more on profitability decisions than the balance sheet where as the balance sheet will also help in solvency, liquidity and other long term investment decisions. Cash flows will also highlight the efficient use of resources and their returns.

All equally very important...

Altough all financial statements are important, but it seems that the statement of financial position is the most important one. Financial analysis mostly is based on the statements of Financial positios where you can get your ratios (liquidity, solvency) and trends. also it shows the changes of owners equity through net income added