Let's put these three financial statements into a framework that we can refer to throughout the course. So let's envision that we have the beginning of a period, it might be a year, it might be a quarter, but the beginning of a period, and the end of a period. So we'll call this the accounting period, okay? At the beginning of the period, we could have a balance sheet that would show us exactly what the company looked like, exactly what the financial position looked like at that specific point in time. So it would be like I have a camera here, because it would be like just taking a snapshot, at that very nanosecond of what happened in time for that company. The balance sheet is cumulative, so it will have accumulated the effect of all transactions of everything that happened, In the company, since its inception. So all of that will be accumulated here on the balance sheet. I could take a snapshot of the financial position of a company at the end of the period, or at the end of the year. Again, specific point in time, this balance sheet will accumulate the effect of all the transactions that have happened since, The company's inception. Now because one of these is at the beginning of the period, and one of these is at the end of the period, we would expect them to look different, because time has passed here. So clearly, the balances in some of these accounts, or the financial position of the company, will have changed over this particular period of time. Wouldn't it be terrific, if we had something that would tell us how this financial position had changed from the beginning of the period, or the end of the period, or would help us understand that change? Well, luckily we do. We have two statements that help us understand how we get from the beginning of the period to the end of the period. The first one is the Income Statement. We'll talk about the Income Statement in a moment. The second statement, is the Statement of Cash Flow, and I like to call these the video production of the accounting system, because they help us understand what happens during a period of time. So we'll spend some time talking about the Income Statement, and how it helps us understand how we get from this picture to this picture. And then we will spend some time talking about the Statement of Cash Flow in this same spirit.