prompt: Can you summarize the three main financial statements for me which are the income statements, balance sheet, and cash flows statement?
chosen.role: system
chosen.content: A chat.
chosen.role: user
chosen.content: Can you summarize the three main financial statements for me which are the income statements, balance sheet, and cash flows statement?
chosen.role: assistant
chosen.content: The income statement tells the reader the amount of revenue a firm had earned over a certain period. Also, it shows the costs and benefits that are related to the earning of that revenue. At the bottom of the statement or the “bottom line,” the report will show whether a firm had net earnings or net losses over the time the statement is reporting for. Lastly, the income statement reports earnings per share (EPS) which tells the reader the amount shareholders would receive if the firm decided to distribute all its net earnings for a specific time.
  
  The balance sheet gives the reader details on the firm’s assets, liabilities, and stockholders’ equity. These three variables make up the basic accounting equation where assets equal liabilities plus stockholder’s equity. Assets are anything that a firm owns that has value. This means assets can be either sold or used so the firm can provide products or services resulting from the use of said assets. Liabilities represent certain amounts of money that a company may owe to others. A firm can have liabilities that are due within the year (short-term) or liabilities that are due over a year (long-term). These can include various obligations like bank loans, accounts payable, or even rent. Stockholder’s equity represents the amount of money that would be remaining if a firm sold all its owned assets and paid off all its liabilities where what is left over would belong to the shareholders.
  
  The statement of cash flows gives the reader a company’s inflows and outflows of cash. This report is important due to being able to show if a company has enough cash on hand to pay off its expenses and purchase further assets. This report shows the changes over time rather than the absolute dollar amounts at a specific point in time. Usually, the statement of cash flows is divided into three parts which include operating activities, investing activities, and financing activities.
  
rejected.role: system
rejected.content: A chat.
rejected.role: user
rejected.content: Can you summarize the three main financial statements for me which are the income statements, balance sheet, and cash flows statement?
rejected.role: assistant