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Financial statements

Understand how to read a financial statement.


Reading a financial statement: Cash flow statement, accountant’s report, and notes to the financial statements

Learn how to read the cash flow statement and understand the accountant’s report on a financial statement.


Financial statements: Choosing accounting standards

To prepare financial statements, businesses need to choose accounting standards that are right for their company’s needs.


Reading a financial statement: The balance sheet (assets, liabilities and equity)

Understand how to read the three parts of the balance sheet on a financial statement: assets, liabilities and equity.


Financial statements: The four components

Financial statements describe the profitability and value of a business. They are comprised of four main components.


Reading a financial statement: The income statement

On a financial statement, the income statement shows revenues less expenses. This is how a company’s net income is calculated for a fiscal period.


Current liabilities and long-term liabilities on the balance sheet

Two main types of liabilities exist: current liabilities and long-term liabilities. Both are financial obligations.


Cash flow: Cash in, cash out through operations, financing and investing

Money moves through a company (“cash flow”) via three main channels: operations, financing and investing.


When to recognize revenue as earned: Key concepts

This overview helps startups understand when to recognize revenue as earned.


Accounting mechanics: An example of financial statements

This sample financial statement highlights the relationship between the different parts of the financial statements.