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Financial Statements

The formal set of reports — P&L, balance sheet, cash flow statement — that together describe a business's financial position.

Financial statements are the standard reporting set: the profit and loss statement (performance over a period), the balance sheet (position at a date), and the cash flow statement (where money came from and went).

Read together they answer the three fundamental questions: is the business profitable, is it financially sound, and does it generate real cash? Any one report alone can mislead.

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