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There are three standard reports that are created through the accounting process:
 

• The income statement, which describes the profits or losses, expenses, and gross proceeds over a given period of time. 

 

• The balance sheet, basically shows the firm’s assets (what they own) and their liabilities (what they owe) at a specific point in time.

 

• The statement of cash flow is an analysis of the flow of cash in and out of the firm.