By reading this chapter, you will…

  1. Acquire the tools necessary to understand and execute appropriate accounting procedures.
  2. Understand the structure and purpose of the three primary financial statements: Balance sheet, income statement and cash flow statement. 
  3. Understand the basic language of business, such as cost of sales, expenses, bad debts, fixed assets, and the difference between cash and profit. 
  4. Analyze financial information and make better decisions using ratios such as balance sheet ratios, net profit per share and return on equity.