The Layman’s Guide to Understanding Financial Statements · How to Read, Analyze, Create & Understand Balance Sheets, Income Statements, Cash Flow & More by Lawrence, Simon -- Read -- Imperial Library of Trantor

Index

Introduction Chapter 1: Accounting and Bookkeeping Principles

Defining Terminology What are Accounting and Bookkeeping Duties of a Bookkeeper vs. an Accountant Key Accounting and Bookkeeping Principles

Economic Entity Assumption Monetary Unit Assumption Specific Time Period Assumption Cost Principle Full Disclosure Principle Going Concern Principle Matching Principle Revenue Recognition Principle Materiality Principle Conservatism Principle

Chapter 2: Introduction to Financial Statements

What are Financial Statements? Using Financial Statement Information

Balance Sheets Income Statements

Classifying Revenue and Expenses

The Cash Flow Statement Investing Activities Financing Activities Statement of Owner's Equity

Chapter 3: Preparation and Interpreting Financial Statements

Preparing and Interpreting the Trial Balance Benefits of the Trial Balance Shortcomings of the Trial Balance Preparing and Interpreting the Income Statement

Step 1: Calculate the Gross Profit Step 2: Calculate Earnings Before Interest and Taxes(EBIT) Step 3: Calculate the Earnings Before Tax (EBT) Step 4: Calculate the Net Income

Preparing and Interpreting the Balance Sheet

Step1: Determine the Reporting Date and Period Step 2: Identify Your Assets Step 3. Identify Your Liabilities Step 4: Calculate Shareholders’ Equity Step 5: Compare the sum of Assets with that of Liabilities and Owner's Equity

Preparing and Interpreting the Statement of Cash Flows

Preparing and Interpreting the Statement of Owner's Equity

Chapter 4: What You Can Learn From Financial Statements

Learning from the Balance Sheet Learning from the Income Statement Learning from the Statement of Owner's Equity Learning from the Statement of Cash Flow

Chapter 5: Precautions and Mistakes to Avoid

Mistakes Made by Amateur Accountants Accounting Basics You Should Never Forget How to Detect Accounting Problems from Financial Statements FAQs about Financial Statements

Conclusion Why Financial Statements are Important Who Needs to See Financial Statements?