[Series] What Every Entrepreneur Needs to Know About Accounting – Making A Profit

 

Accounting Basics

As an accountant, you are responsible for preparing three primary types of financial statements representing a business. The income statement reports the profit-making activities and bottom line profits or losses generated by your company over specified periods of time.

The balance sheet is a snapshot of the company’s financial position at one point in time and includes everything from accounts receivable to shareholder equity. The cash flow statement tells you how much money was generated by profit-making activities, what it did with that money (pay for expenses), and whether or not there are any changes in net assets like inventory levels.

[Series] What Every Entrepreneur Needs to Know About Accounting – Making A Profit
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