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Isn’t the balance sheet changes between two points in time the cash flow statement?

The P&L is based on transactions on Income accounts. The balance sheet is a point in time view of BalanceSheet accounts.

For example: CASH is balance sheet. However REVENUE is an income account type.

The income statement is the changes between to points in time of all balances of Income accounts.




The balance sheet's components each capture distinct aspects of a company's finances. While you've mentioned 'income accounts', these actually fall under the Equity section.

A balance sheet has three primary segments, corresponding to the accounting equation:

  - Assets
  - Liabilities
  - Equity
Specifically, you seem to be focusing on:

--Assets: Cash and cash equivalents--

This indicates a company's liquid position. To understand cash flow changes over a given period, compare the differences in 'cash and cash equivalents'.

-- Equity: Retained earnings–-

This reflects accumulated income. To gauge profit changes over a time frame, observe the variations in Retained Earnings. (This is accurate provided no dividends were distributed during that period.)




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