Financial Statements


  • Financial Statements is a perfect introduction to financial accounting for non-financial managers, investors, business students, lawyers, lenders, entrepreneurs, and more. Financial Statements deftly shows that all this accounting and financial-reporting stuff is not rocket science and that anyone can understand it!


This edition replaces all previous editions of this bestselling title based on the revised and expanded edition corrected and back to the basics.

• The income statement shows the manufacturing (or service offerings) and selling actions of the company that result in profit or loss during a period. It gives a very important perspective on the company’s performance, its profitability.

• The cash flow statement details cash into and out of the company for a period. You need money to make money. Running out of cash is bad. Duh.

• The balance sheet records at the end of a period, an instant in time, what the company owns and what it owes, including the owners’ stake, called shareholders’ equity.