Overview

Every business — whether it’s SweetBite Bakery or TechNova Solutions — speaks a universal financial language built on three statements:

• Income Statement (Profit & Loss) → shows performance
• Balance Sheet → shows position
• Cash Flow Statement → shows movement Together they form the Financial Trinity, describing what the company did, what it owns, and how money moved.

The Big Picture

“Accounting writes history. Finance reads it.”

When you finish this chapter, you’ll be able to glance at any business report and understand the story it tells — how well it performed, how stable it is, and whether it’s actually making cash.