Module 3: Horizontal Financial Statements Model

The Horizontal Financial Statements Model is a teaching tool that presents the three primary financial statements—the Balance Sheet, the Income Statement, and the Statement of Cash Flows—side-by-side (horizontally).
Purpose: It allows for the immediate analysis of how individual business events impact all three financial statements simultaneously.
Contrast with previous methods: Unlike the method in Chapter 1 where business events were first recorded under the accounting equation, and then financial statements were derived, this model shows the direct impact of an event on each statement at once.
Real-world relevance: While not used in practice in the real world, this model is crucial for developing a