How to read financial statements book
Financial Statements: A Step-by-step Guide to Understanding and Creating Financial Reports by Thomas R. Ittelson
It is not easy to write an accounting book. A lot of accounting books are written for accountants which might makes a lot of sense however a large business audience may be left behind.
Mr. Ittelson does a decent job of balancing the explanation of accounting principles and the details behind these principles without getting into too many minute details as happen in other accounting books.
In the book first section, Mr. Ittelson starts with explaining the 3 accounting statements, each with its own line items and then “ties up” the 3 statements together, while explaining the different aspects of the movements between the statements. Mr. Ittelson also explains several important financial/accounting ratios at a later part of the book.
I think business owners and readers, who are not accountant by profession, will greatly benefit from the second section of the book. In this section Mr. Ittelson is doing a superb job of explaining the construction and use of the financial statement (as well as other financial tools and statements) via a hypothetical company. Mr. Ittelson takes the reader through many of “any corporation” transactions and weaves the fictional story with real financial statements.
I believe the reader may find the second section the most beneficial part of the book, and may use it not just as a learning tool but also as a reference guide for their own business situation. One caveat to the above statement, a novice financial reader may find this section a bit overwhelming so patience is required.
I am not sure if this book fits to be the first accounting book you should read, but if you are willing to invest the time and energy you will find many insights and nuggets of wisdom in this book.
Top 10 Best Accounting Books of all Time
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By Dheeraj Vaidya 2 Comments. Accounting Tutorials. Accounting books are the different books having the information about what is the accounting, types of accounting, ways to do accounting and the other related concepts where some of the books include books such as Accounting Made Simple by author Mike Piper, The Tax and Legal Playbook: Game-Changing Solutions To Your Small Business Questions by author Mark J. However, imagine numbers and information processed in a language that is very easy to understand. Well, this is the handy work of great authors who have made finance a very interesting subject for even the dumbest of students among us. If you choose to defer I believe you need to go through some of the best accounting books to change your mindset. Well, I would not make you do the research work, take a look at the top 10 best books on the accounting of all time, read them to agree with me on this topic very soon.
Financial statements are the report card of business. Whether you are a new investor , a small business owner, an executive, or just trying to keep track of your personal finances , you need to understand how to read, analyze, and create financial statements so you can get a full and accurate understanding of your finances. Financial statements will tell you how much money there is, how much debt is owed, the income coming in each month, and the expenses going out the door. This guide to financial statements will teach you how to do all of that. Many of the financial statements you need to understand a company are contained in its annual report. This will give you an overview of the annual report, how you can request one for a potential stock, and why you need to get your hands on it if you plan on analyzing financial statements.
Knowing how to work with the numbers in a company's financial statements is an essential skill for stock investors. The meaningful interpretation and analysis of balance sheets , income statements, and cash flow statements to discern a company's investment qualities is the basis for smart investment choices. However, the diversity of financial reporting requires that we first become familiar with certain financial statement characteristics before focusing on individual corporate financials.
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