What Are the Key Financial Statements Entrepreneurs Should Know?
Entrepreneurs should be familiar with three primary financial statements:
1. Income Statement: This document provides an overview of revenue, expenses, and profits over a specific period. 2. Balance Sheet: This statement outlines assets, liabilities, and shareholders' equity at a particular point in time. 3. Cash Flow Statement: This statement shows the inflows and outflows of cash, highlighting how well the company manages its cash to fund its operations and growth.