Chapter 11
Deciphering a Financial Report
IN THIS CHAPTER
Looking after your investments
Evaluating and managing investment opportunities
Tapping other sources of invaluable business information
Scanning footnotes and sorting out important ones
Checking out the auditor’s report
This chapter focuses on the external financial report that a business sends to its lenders and shareowners. Many topics explained in the chapter apply to not-for-profit (NFP) entities as well. But the main focus is reading the financial reports of profit-motivated business entities. External financial reports are designed for the non-manager stakeholders in the business. The business’s managers should understand how to read and analyze its external financial statements, and managers should do additional financial analysis, discussed in Chapter 13. This additional financial analysis by managers uses confidential accounting information that is not circulated outside the business.
You could argue that this chapter ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access