A Simple Way to Understand Financial Statements and some Fundamental Accounting Concepts using one diagram
This article forms part of Chapter 2 of my book on Accounting and Finance for Non-finance Professionals. The aim is to remove the terror out of understanding financial statements & key accounting concepts.
Do you get the chills when it comes to numbers and figures? Do you always wonder what on earth they’re talking about when they present those financial statements? Have you found yourself thrust into a management role that requires you to have to deal with them numbers and you have no clue where to start? You are so good at what you do and a great professional in your field of specialisation but feel so lost when it comes to managing and reporting on finances related to your unit or department. Well, you are in the right place. Help is on the way. In fact, help is here.
See an explanation of the actual model…