Article 3 — The Three Financial Statements: How to Read the Language of Business

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.” [The Financial Trinity Overview] (Concept): A triangle with three labeled sides — Income Statement, Balance Sheet, Cash Flow Statement — arrows looping between them: • Income Statement → Profit • Profit affects → Balance Sheet (Retained Earnings) • Cash Flow explains...…