The Basics of Understanding Financial Statements: Learn how to read financial statements by understanding the balance sheet, the income statement, and the cash flow statement

by Mariusz Skonieczny

The purpose of this book is to help readers understand the basics of understanding financial statements. Material covered includes a step-by-step instruction on how to read and understand the balance sheet, the income statement, and the cash flow statement. It also covers information about how these three statements are interconnected with one another.

Genres: Finance, Business, Nonfiction, Accounting

107 pages, Kindle Edition

First published June 1, 2012

Reviews

[Prashant Gupta · Rating 5 out of 5]

Very informative and to the point

I loved reading this book, and it explains all the three financial statements in a very simple language that even people without a financial background would be able to understand.. I have read it twice and would give it another shot to remember all the concepts

[Ramy Gerges · Rating 4 out of 5]

I read this book after reading the "Step-by-step Guide" by Thomas Ittelson, which was a lot more in depth. Nonetheless it offered something new, by helping me frame the different metrics in the financial statements from the perspective of the business, which felt more practical.

[Thy Duong · Rating 3 out of 5]

The book just arrives at my room today and it takes me 2.5 hours to finish the whole thing. I might go back reading it again but by far it is not challenging to remember great details of it. If you are a blank page in financial statement, this book is recommended.
PROS:
- Easy to digest and simple language for non-accounting, non-finance, non-business people.
- Easy to capture its overall ideas.
- Include some examples to be more critical and highlight the point.
- Of course, there should be visualizations in any financial statement books. So this one does the same.
- Binging on financial statements, with my respect, it should be supplemented with more advanced books because it seems to be too easy.
CONS:
- Don't think it is worth buying the book with the shown price on Amazon because all info can be found on Internet by searching such key words like "how to read financial statement, income sheet,...". But I still recommend it as it includes examples and highlights some investment tips.
- The cover looks nice but the interior design, including text, visualizations, is too simple and thereby quite tedious.
- As I have attempted to read financial statements before, this book still lacks of other super detailed thingy. Perhaps it aims at conveying the most fundamental ones so that may explain why.

[Juan Carlos Vallejo · Rating 5 out of 5]

Great book.

This is one of the best books that I read when it comes to investment knowledge. I highly recommend this book to anyone that’s looking to grow their knowledge in investment.

[L · Rating 3 out of 5]

Good info

This book provided good insight and a start to further learning Account principles to utilize when analyzing a corporation’s financial reports.
This is the third of Mariusz’s books I read. It must be good, because I continue to return. Enjoy.

[Akshatha · Rating 5 out of 5]

Crisp

I feel prepared to read annual reports of big companies thanks to this short but informative book. If you're not a seasoned business analyst you'll find this book very useful

[PAM · Rating 4 out of 5]

Helpful

Helped break down what seemed to be another language. Very helpful. Would recommend to anyone looking to invest some dollars.

[Victor Hom · Rating 4 out of 5]

very straightforward. covers financial accounting 101

[Derrick Monk · Rating 3 out of 5]

Decent

Good book, for basic understanding of financial statements. I would not recommend this book for anyone literate in this topic

[mJ · Rating 3 out of 5]

Basics

A very basic book about Account Statements. It is Good if you are an absolute beginner and looking at value investment.

[Juliet Hayes · Rating 5 out of 5]

economy

This book was a solid introduction to Economics 101. The balance sheet was balanced. The cash flow statement was patterned. Thank you.

[Jose · Rating 5 out of 5]

Excelent!!!

A well explained book, that give us the account and financial basis full understanding, very useful and well presented information.

[James Heenan · Rating 2 out of 5]

Very basic.

[Dhruva Ramachandran · Rating 1 out of 5]

For accounting beginners

The information provided in the book were for beginners , no detailed explanation on how the metrics were done or the methodology

[Julius · Rating 4 out of 5]

Pretty dry line by line explanation of the three financial reports. Good for anyone with 0 knowledge, who want to under the basics. It does not deviate into deep interpretation, but is more of 'this is the line and this is what it means' with one or two caveats added in some cases.