ENTREPRENEURSHIP

Detailed explanation-1: -The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, its revenues and costs, as well as its cash flows from operating, investing, and financing activities.

Detailed explanation-2: -What Do Investors Look For In Financial Statements? Of all the things company financial statements reveal to an investor, there are four main factors investors consider: revenue, profitability, debt level, and cash flow.

Detailed explanation-3: -The income statement presents the revenues, expenses, and profits/losses generated during the reporting period. This is usually considered the most important of the financial statements, since it presents the operating results of an entity.

Detailed explanation-4: -But if you’re looking for investors for your business, or want to apply for credit, you’ll find that four types of financial statements-the balance sheet, the income statement, the cash flow statement, and the statement of owner’s equity-can be crucial in helping you meet your financing goals.