Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports (Over 200,000 copies sold!)

Finally, a handbook that demystifies accounting principles!

This revised edition of Financial Statements is the clearest, most comprehensive introduction to financial reporting available—no accounting background required. It is the perfect guide for non-financial managers, investors, business students, entrepreneurs, lawyers, and anyone seeking a solid understanding of financial accounting.

Financial Statements takes you step-by-step through the basics of accounting, showing that financial reporting is not as complicated as it seems. With simple definitions, easy-to-understand language, and practical examples, Ittelson helps you grasp the core concepts behind the three key financial statements that form the backbone of any business:

• Income Statement: Shows the company’s profitability over a period, detailing manufacturing or service actions and their financial results.
• Cash Flow Statement: Tracks cash flowing into and out of the company, helping you understand its liquidity—vital to any business.
• Balance Sheet: Provides a snapshot of a company’s financial position at a given moment, outlining what it owns, owes, and the owner’s equity.

With a visual approach and straightforward explanations, Financial Statements empowers you to understand how each transaction impacts these essential reports, enabling you to see the full picture of a company’s financial health. Whether you’re new to finance or looking to refine your skills, this book makes financial reporting accessible and easy to understand.