Entrepreneurship & Business by Johnny Stewart
Keeping Financial Statements
Many businesses look successful on the surface. A financial statement allows you to see if a business is successful. A financial statement shows you the truth of a business. Seeing the financial statement allows investors to make educated decisions based on the numbers. No proper investor is going to invest without seeing a financial statement. The financial statement has three pieces. The first is a balance sheet. Second is an income statement. Third is the statement of cash flow.
- Financial statements show the truth of the business
- Many businesses look successful only on the outside
- Financial statements have three components