Not Rocket Science A company's financial statements simply document the movement of cash and goods and services into and out of the enterprise.
That is all financial statements are about.
It is no more complicated.
Everything else is details.
Don't sweat the details.
This 48-page, full color picture book provides an overview understanding of financial statements with no gobbledygook and confusing jargon.
All necessary numeric structure is explained and all essential vocabulary is defined.
No prior accounting knowledge required.
Understanding financial reporting does not have to be difficult.
You have learned all the math required to master financial statements by the end of the fourth grade--mostly addition and subtraction.
However, you will need to learn and use specialized accounting vocabulary, which can be confusing.
You will also need to understand the structure and appreciate the purpose of the three major numeric statements that describe a company's financial condition.
Each paints a different, essential picture--the three-legged stool of company reporting.
The Income Statement shows the manufacturing (or service offerings) and selling actions of the company that result in profit or loss during a period of time (called the period).
The Income Statement gives a very important perspective on the company's performance -- its profitability.
The Cash Flow Statement details the movements of cash into and out of the company for the period.
You need money to make money.
Running out of cash is bad.
The Balance Sheet records at the end of a period, what the company owns and what it owes, including the owners' stake called shareholders' equity.
Financial statements are simply summaries and structured presentations of the various events (business transactions) that affect a company's financial performance.
Business transactions are anything that transfers money to or from the company, or transfers goods and services.
Transactions can also record future financial obl.
Mercury Group Press A visual guide to financial statements: overview for non-financial managers & investors, paperback/thomas r. ittelson
