CHAPTER 3
Financial Statements
This chapter and the next discuss the main financial statements and their interpretation. Understanding the financial statements is an important part of running a small business. The financial statements are a key record of how the business is doing and provide clues as to what changes might improve the business. Furthermore, the financial statements are a key communication link to the various stakeholders of the business, and none more important than the financial backers of the business.
Despite their importance and central position in running a business, the understanding and interpretation of the financial statements is not always straightforward. In this chapter we introduce the key components of the financial ...
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