The 3 Primary Financial Statements are the balance sheet, income statement, and cash flow statement from "summary" of The Personal MBA by Josh Kaufman
The balance sheet, income statement, and cash flow statement are the three primary financial statements used by businesses to provide a comprehensive view of their financial performance and position. The balance sheet is a snapshot of a company's financial health at a specific point in time. It provides a summary of what the company owns (assets), what it owes (liabilities), and the amount of ownership that belongs to its shareholders (equity). By comparing assets to liabilities, stakeholders can determine the company's overall financial strength and stability. The income statement, on the other hand, shows a company's financial performance over a specified period, usually a month, quarter, or year. It details the company's revenue, expenses, and net profit or loss. The income statement helps stakeholders understand how profitable a company is and whether it...
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