There are three financial documents that are critical in financial accounting:
Many new students get confused why the statement of cash flows matters. After all, as long as you have more assets than liabilities, you could always turn assets into cash. Unfortunately, sometimes it's hard to sell assets on short order to get the cash you might need to pay for things. Additionally, understanding where cash is coming from will often help managers better understand what the business is doing, but you'll learn more about that later.
Donna wants to know if the firm is profitable.