Financial statements are the backbone of any business’s financial reporting. This guide will help beginners understand the basics of these crucial documents.
- Types of Financial Statements:
- Balance Sheet
- Income Statement
- Cash Flow Statement
- Reading a Balance Sheet:
- Assets
- Liabilities
- Equity
- Interpreting an Income Statement:
- Revenue
- Expenses
- Net Income
- Analyzing a Cash Flow Statement:
- Operating Activities
- Investing Activities
- Financing Activities
By understanding financial statements, business owners can gain insights into their company’s performance and make informed strategic decisions.
