Entrepreneurs should focus on three primary financial statements:
1. Income Statement: This statement shows the company's revenues, expenses, and profits over a specific period. It helps entrepreneurs assess their business's profitability and operational efficiency. 2. Balance Sheet: This provides a snapshot of the company's assets, liabilities, and equity at a particular point in time. It helps in understanding the company's financial stability and liquidity. 3. Cash Flow Statement: This statement details the cash inflows and outflows from operating, investing, and financing activities. It is crucial for assessing the company's ability to generate cash and manage its cash needs.