In the long run an organization must earn a profit
to survive. The same accounting reports are used in
all developed nations.
.

Balance Sheets identify "equity" that
can be invested.

Income Statements identify an
organization's financial status at a
given period of time. Income Statements
can be deceptive if money owed an
organization is counted as income
before it is actually received.

Cash Flow Statements compare the
amount of revenue coming into
and out of an organization during a
given period of time.

Small business owners pay close
attention to Cash Flow since not having
enough cash on had to pay bills is why
most go bankrupt. ___________________________