The Guide to Understanding Financial Statements

by S.B. Costales

This guide to understanding financial statements assumes no prior knowledge of accounting or mathematics, or even business sophistication. It contains numerous worked-out examples and sample balance sheets which clarify explanations, while end-of-chapter questions make the book useful for self-study and training programmes. Now in its second edition, it features new and expanded coverage of cash flow analysis, Subchapter S corporations, LIFO/FIFO accounting and profit margin analysis.

Genres: Business

192 pages, Paperback

First published May 1, 1979

Reviews

[Mark Dantonio · Rating 4 out of 5]

ISBN = 0070131910 Geza Szurovy, SB. Costales

This is a simple straightforward guide to reading annual reports and financial statements. The book looks at what balance sheets, income statements, reconciliations of retained earnings and statements of cash flow are and how they are related.

It devotes a chapter to each of these and it shows how each of them is related to the other. It also goes into some minor ratio analysis so that different investments can be compared on an equal basis. It explains how to interpret the confusing mess and also how to get information that can be useful for investing purposes.

The book also has case studies at the end reviewing the material provided and showing how to use the analysis. This part was particularly valuable because it showed how what one learned is translated into a practical use.

Mark D.

[Alex Baier · Rating 3 out of 5]

Great for introduction to accounting. I used this book as a review of my first accounting class in university and it was great, but did not teach me anything new. Love that it has some examples as the back to review knowledge with

[Ruth · Rating 3 out of 5]

c1970: Despite a number of new formulae to help to analyse financial performance, this book is proof that the time old considerations are still the wisest. Simple to read and understand and inexplicitly funny in some places, any good credit analyst would actually benefit in reading this book - even after, what, 44 years or so. The only bone that I have to pick with the author/s are the comments regarding invoice financing - now that is a misguided and old fashioned way of looking at a really good financial tool if used properly.

[Jason · Rating 3 out of 5]

helps one understanding financial fundamentals. worth reading.