Thomas R. Ittelson

A colleague years ago explained - in about 25 words - the concept of double-entry accounting. If you don't understand that basic concept and aren't prepared to explain it to anyone you meet then this book may well leave you bewildered. However, once the concept is understood, this book is a good 'traveling companion' through the morass of financial statements. If you're in an industry where a standardized chart of accounts is used for comparison, you'll be able to more accurately determine which of several sound-alike accounts would be most appropriate for what you're trying to accomplish. The style of presentation is, at times, a bit too succinct for the concepts involved and the typeface layout isn't the best for this type of book. Those nits notwithstanding, it's a good book for someone getting more in-depth into accounting in an organization where there aren't already a lot of pre-established requirements. I wouldn't rate it as particularly helpful for someone trying to create financials for financing purposes.… (plus d'informations)

I can't quite get my head around double-entry accounting. The logical part of me loves the idea of "checks and balances" but the practical part asks how something can be both an asset and a liability?

But that's not what's keeping me from completely enjoying Financial Statements. It's a very good introduction to the basics of business paperwork: the income statement, the cash flow statement, and the balance sheet. After a quick overview of essential accounting terms, the book then follows a hypothetical company through some three dozen transactions. Most of these transactions are on a two-page spread so that we constantly see the effects of each transaction on the three financial statements (including a few that don't have an effect). The book ends with a bit of theory: making decisions based on these financial statements.

The two-page concept works fairly well. There are a few spots where different numbers are used in the financial statements than in the transaction description; with only two pages allotted there is not much room for detail (although eventually most of these "inconsistencies" are explained in later pages). My biggest complaint, though, is the constant notation about advanced topics. Many transactions have a paragraph that says "More later" or "That will be explained later." Only one of these actually points specifically to a page; none of them refer to an indexed term. So if you know where to start but not how to finish, you'll have to read through the rest of the book to find what you're looking for (the index isn't all that great).

Financial Statements would make a great supplement for anyone taking an accounting or business class, or perhaps a stand-alone textbook for a very dedicated self-studier (one who hopefully can ask a mentor about certain areas). As for me, I now have a greater appreciation of all these numbers, even if I personally can't make them work. But then again, Mom always wanted me to be a doctor.… (plus d'informations)