Interpreting Financial Statements

Interpreting Financial Statements builds an intuition for the purpose of the balance sheet, the income statement and the cash flow statement. Illustrations of how the information on these primary financial statements can be used to better understand the stock and flow of an organization’s wealth are also presented. Additionally, an introduction to the debit-credit system of accounting is provided so that users will have an understanding of how organizations account for their resources through time and then use this recorded information to generate their financial statements.