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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. 


  1. Financial statements show the truth of the business
  2. Many businesses look successful only on the outside
  3. Financial statements have three components