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​Links between Financial Statements

Financial statements are linked at points in time and across time.

The Balance sheet is a listing of a company’s investing and financing activities at a point in time.
The three statements that report on cash flow, income, and shareholders’ equity, explain changes over a period of time to investing and financing activities.
Every transaction captured in these three statements impact the balance sheet.
Financial statements are linked by design, period of time explain point in time statements.
This is known as the articulation of financial statements.

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Diagram showing the Articulation of Financial Statements