SlideShare a Scribd company logo
www.fabeducation.com
Financial statements
① Introduction and
the Role of
Finance
of ⑤
Financial statements
www.fabeducation.com
Financial statements are the scorecards of business.
Managers and entrepreneurs need to be fully conversant with
their content and structure to know where to look for
information about business performance.
The FaBEducation Dashboard
Introduction
This presentation
provides essential
information about
financial statements
and is designed to be
used as part of the
FaBEducation©
Finance for Managers
and Entrepreneurs
programme.
www.fabeducation.com
www.fabeducation.com
What you will get from this module
By the end of this module you will:
1. Understand the value of the financial statements
2. Be able to reproduce the content and structure of a Profit
and Loss account and a Balance Sheet from memory
3. Be able to explain the operating cash flow cycle in business
and list the main sources of funding
4. Have completed a unique practice routine to understand the
interplay between business transactions and the financial
statements
Why learn about financial
statements ?
Because they are the
scorecards of business and
understanding their purpose
content and structure is the
first step on the way to being
able to communicate and use
finance in business.
www.fabeducation.com
The Role of Finance - 1
What Businesses do
Businesses conduct
all kinds of
“Transactions”
(finance-speak for
an action) such as
buying stock,
selling goods,
paying salaries,
renting premises
and so on.
www.fabeducation.com
Selling
telephone
Buying
Rent
Travel Wages and
Salaries
Loan
Interest
Capital
Expenditure
Insurance
Light and
heat
New
Loans
Capital
Loan
repayments
The Role of Finance - 2
Two questions
The primary role of Finance is to make
sense of all these transactions and
answer two questions.
Are we making a
profit?
What is the overall
financial position of
the Business i.e. its
Net Worth?
And it does this by funnelling all the
transactions into two statements or
“scorecards”.
www.fabeducation.com
Balance sheetProfit and loss account
The Role of Finance - 3

More Related Content

What's hot

Cir exam 05122k13
Cir exam 05122k13Cir exam 05122k13
Cir exam 05122k13
Asim Abbasi
 
Bba business accounting
Bba  business accountingBba  business accounting
Bba business accounting
shamimakamili
 
Kalpana CV (1)
Kalpana CV (1)Kalpana CV (1)
Kalpana CV (1)
kalpana garg
 
Resume_Lutfun Naher Begum_2015
Resume_Lutfun Naher Begum_2015Resume_Lutfun Naher Begum_2015
Resume_Lutfun Naher Begum_2015
Lutfun Naher Begum Mayna
 
Importance of a financial presentation
Importance of a financial presentationImportance of a financial presentation
Importance of a financial presentation
KingMolina
 
Ekta Bansod Resume
Ekta Bansod ResumeEkta Bansod Resume
Ekta Bansod Resume
Ekta Bansod
 

What's hot (6)

Cir exam 05122k13
Cir exam 05122k13Cir exam 05122k13
Cir exam 05122k13
 
Bba business accounting
Bba  business accountingBba  business accounting
Bba business accounting
 
Kalpana CV (1)
Kalpana CV (1)Kalpana CV (1)
Kalpana CV (1)
 
Resume_Lutfun Naher Begum_2015
Resume_Lutfun Naher Begum_2015Resume_Lutfun Naher Begum_2015
Resume_Lutfun Naher Begum_2015
 
Importance of a financial presentation
Importance of a financial presentationImportance of a financial presentation
Importance of a financial presentation
 
Ekta Bansod Resume
Ekta Bansod ResumeEkta Bansod Resume
Ekta Bansod Resume
 

Viewers also liked

Financial statements 3
Financial statements 3Financial statements 3
Financial statements 3
FaBEducation
 
Financial statements 2
Financial statements 2Financial statements 2
Financial statements 2
FaBEducation
 
Financial statements 5
Financial statements 5Financial statements 5
Financial statements 5
FaBEducation
 
プログラミング勉強会0721
プログラミング勉強会0721プログラミング勉強会0721
プログラミング勉強会0721nallpo
 
My biography fabricio
My biography fabricioMy biography fabricio
My biography fabricio
fabricio agurto
 
Content strategy: Getting your content to work for you
Content strategy: Getting your content to work for youContent strategy: Getting your content to work for you
Content strategy: Getting your content to work for you
Content That Clicks
 
Wynter Wonderland: Chapter 8
Wynter Wonderland: Chapter 8Wynter Wonderland: Chapter 8
Wynter Wonderland: Chapter 8
Keika20
 
The White Legacy--Generation 8, Chapter 2
The White Legacy--Generation 8, Chapter 2The White Legacy--Generation 8, Chapter 2
The White Legacy--Generation 8, Chapter 2
Keika20
 
Clitheroe BaRKC: R5/Lariel
Clitheroe BaRKC: R5/LarielClitheroe BaRKC: R5/Lariel
Clitheroe BaRKC: R5/Lariel
Keika20
 
The White Legacy: Vis's Bachelor Challenge - Day 1
The White Legacy: Vis's Bachelor Challenge - Day 1The White Legacy: Vis's Bachelor Challenge - Day 1
The White Legacy: Vis's Bachelor Challenge - Day 1
Keika20
 
The White Legacy--Generation 6, College (Part 1)
The White Legacy--Generation 6, College (Part 1)The White Legacy--Generation 6, College (Part 1)
The White Legacy--Generation 6, College (Part 1)
Keika20
 
Wynter Wonderland: Chapter 9
Wynter Wonderland: Chapter 9Wynter Wonderland: Chapter 9
Wynter Wonderland: Chapter 9
Keika20
 
Dinosaur
DinosaurDinosaur
Dinosaur
meetrajput
 
The White Legacy: Vis's Bachelor Challenge, Day 3
The White Legacy: Vis's Bachelor Challenge, Day 3The White Legacy: Vis's Bachelor Challenge, Day 3
The White Legacy: Vis's Bachelor Challenge, Day 3
Keika20
 
The White Legacy--Generation 8, Chapter 1
The White Legacy--Generation 8, Chapter 1The White Legacy--Generation 8, Chapter 1
The White Legacy--Generation 8, Chapter 1
Keika20
 
The White Legacy--Generation 2, Chapter 2
The White Legacy--Generation 2, Chapter 2The White Legacy--Generation 2, Chapter 2
The White Legacy--Generation 2, Chapter 2
Keika20
 
Clitheroe BaRKC: R3/Renaisse
Clitheroe BaRKC: R3/RenaisseClitheroe BaRKC: R3/Renaisse
Clitheroe BaRKC: R3/Renaisse
Keika20
 
Clitheroe BaRKC: R5/Rheingold
Clitheroe BaRKC: R5/RheingoldClitheroe BaRKC: R5/Rheingold
Clitheroe BaRKC: R5/Rheingold
Keika20
 
The White Legacy--Generation 6, Chapter 2
The White Legacy--Generation 6, Chapter 2The White Legacy--Generation 6, Chapter 2
The White Legacy--Generation 6, Chapter 2
Keika20
 

Viewers also liked (20)

Financial statements 3
Financial statements 3Financial statements 3
Financial statements 3
 
Financial statements 2
Financial statements 2Financial statements 2
Financial statements 2
 
Financial statements 5
Financial statements 5Financial statements 5
Financial statements 5
 
Spiderman
SpidermanSpiderman
Spiderman
 
プログラミング勉強会0721
プログラミング勉強会0721プログラミング勉強会0721
プログラミング勉強会0721
 
My biography fabricio
My biography fabricioMy biography fabricio
My biography fabricio
 
Content strategy: Getting your content to work for you
Content strategy: Getting your content to work for youContent strategy: Getting your content to work for you
Content strategy: Getting your content to work for you
 
Wynter Wonderland: Chapter 8
Wynter Wonderland: Chapter 8Wynter Wonderland: Chapter 8
Wynter Wonderland: Chapter 8
 
The White Legacy--Generation 8, Chapter 2
The White Legacy--Generation 8, Chapter 2The White Legacy--Generation 8, Chapter 2
The White Legacy--Generation 8, Chapter 2
 
Clitheroe BaRKC: R5/Lariel
Clitheroe BaRKC: R5/LarielClitheroe BaRKC: R5/Lariel
Clitheroe BaRKC: R5/Lariel
 
The White Legacy: Vis's Bachelor Challenge - Day 1
The White Legacy: Vis's Bachelor Challenge - Day 1The White Legacy: Vis's Bachelor Challenge - Day 1
The White Legacy: Vis's Bachelor Challenge - Day 1
 
The White Legacy--Generation 6, College (Part 1)
The White Legacy--Generation 6, College (Part 1)The White Legacy--Generation 6, College (Part 1)
The White Legacy--Generation 6, College (Part 1)
 
Wynter Wonderland: Chapter 9
Wynter Wonderland: Chapter 9Wynter Wonderland: Chapter 9
Wynter Wonderland: Chapter 9
 
Dinosaur
DinosaurDinosaur
Dinosaur
 
The White Legacy: Vis's Bachelor Challenge, Day 3
The White Legacy: Vis's Bachelor Challenge, Day 3The White Legacy: Vis's Bachelor Challenge, Day 3
The White Legacy: Vis's Bachelor Challenge, Day 3
 
The White Legacy--Generation 8, Chapter 1
The White Legacy--Generation 8, Chapter 1The White Legacy--Generation 8, Chapter 1
The White Legacy--Generation 8, Chapter 1
 
The White Legacy--Generation 2, Chapter 2
The White Legacy--Generation 2, Chapter 2The White Legacy--Generation 2, Chapter 2
The White Legacy--Generation 2, Chapter 2
 
Clitheroe BaRKC: R3/Renaisse
Clitheroe BaRKC: R3/RenaisseClitheroe BaRKC: R3/Renaisse
Clitheroe BaRKC: R3/Renaisse
 
Clitheroe BaRKC: R5/Rheingold
Clitheroe BaRKC: R5/RheingoldClitheroe BaRKC: R5/Rheingold
Clitheroe BaRKC: R5/Rheingold
 
The White Legacy--Generation 6, Chapter 2
The White Legacy--Generation 6, Chapter 2The White Legacy--Generation 6, Chapter 2
The White Legacy--Generation 6, Chapter 2
 

Similar to Financial statements 1

Angel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docx
Angel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docxAngel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docx
Angel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docx
amrit47
 
barringer_e3_ppt_04.ppt
barringer_e3_ppt_04.pptbarringer_e3_ppt_04.ppt
barringer_e3_ppt_04.ppt
DawToneLay
 
BSBFIN601 Training Delivery Presentation .pptx
BSBFIN601 Training Delivery Presentation .pptxBSBFIN601 Training Delivery Presentation .pptx
BSBFIN601 Training Delivery Presentation .pptx
IsurikaPerera2
 
Chapter 1 financial management – introduction & goals of the firm
Chapter 1 financial management – introduction & goals of the firmChapter 1 financial management – introduction & goals of the firm
Chapter 1 financial management – introduction & goals of the firm
Ibrahim Sameer
 
1 - TheArtofReadingFinancialStatements-Level1-v1.pdf
1 - TheArtofReadingFinancialStatements-Level1-v1.pdf1 - TheArtofReadingFinancialStatements-Level1-v1.pdf
1 - TheArtofReadingFinancialStatements-Level1-v1.pdf
dke7831
 
Financial reporting assignment help01.pptx
Financial reporting assignment help01.pptxFinancial reporting assignment help01.pptx
Financial reporting assignment help01.pptx
jamesjoseph48877
 
353798972-Entrep-PPT-1st-Qtr.pptx
353798972-Entrep-PPT-1st-Qtr.pptx353798972-Entrep-PPT-1st-Qtr.pptx
353798972-Entrep-PPT-1st-Qtr.pptx
MaricelVallejos
 
Financial and managerial accounting the basis for business decisions 18th edi...
Financial and managerial accounting the basis for business decisions 18th edi...Financial and managerial accounting the basis for business decisions 18th edi...
Financial and managerial accounting the basis for business decisions 18th edi...
KrisWu123
 
Module 15
Module 15Module 15
Intro to ent&wht_bus_plan
Intro to ent&wht_bus_planIntro to ent&wht_bus_plan
Intro to ent&wht_bus_plan
JeronicaLogan
 
9707 y10 sw_5_as
9707 y10 sw_5_as9707 y10 sw_5_as
9707 y10 sw_5_as
Saadia Riaz
 
Chapter 4 writing a business plan(entrepreneurship)
Chapter 4 writing a business plan(entrepreneurship)Chapter 4 writing a business plan(entrepreneurship)
Chapter 4 writing a business plan(entrepreneurship)
Afzaal Ali
 
Business plan template1
Business plan template1Business plan template1
Business plan template1
vivek1136
 
How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...
How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...
How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...
FaHaD .H. NooR
 
BUSINESS-PLAN-PPT.pptx
BUSINESS-PLAN-PPT.pptxBUSINESS-PLAN-PPT.pptx
BUSINESS-PLAN-PPT.pptx
RamHSaraus
 
Acco 20273-accounting-1
Acco 20273-accounting-1Acco 20273-accounting-1
Acco 20273-accounting-1
AprilAnnMarcelo
 
Fbarringer4e_04 (2).ppt
Fbarringer4e_04 (2).pptFbarringer4e_04 (2).ppt
Fbarringer4e_04 (2).ppt
AtifAliAnwarFastNU
 
Financial Accounting Feb22BSCM (1).pptx
Financial Accounting Feb22BSCM (1).pptxFinancial Accounting Feb22BSCM (1).pptx
Financial Accounting Feb22BSCM (1).pptx
AppleJoyBaez1
 
Chapter 4.ppt
Chapter 4.pptChapter 4.ppt
Chapter 4.ppt
MuhammadAdeel321
 
M8 - Setting up finance function irrespective of the size of the business
M8 - Setting up finance function irrespective of the size of the business M8 - Setting up finance function irrespective of the size of the business
M8 - Setting up finance function irrespective of the size of the business
Precious Mvulane CA (SA),RA
 

Similar to Financial statements 1 (20)

Angel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docx
Angel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docxAngel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docx
Angel InvestorVenture Capital Mock Presentation Part 2 Grading Gu.docx
 
barringer_e3_ppt_04.ppt
barringer_e3_ppt_04.pptbarringer_e3_ppt_04.ppt
barringer_e3_ppt_04.ppt
 
BSBFIN601 Training Delivery Presentation .pptx
BSBFIN601 Training Delivery Presentation .pptxBSBFIN601 Training Delivery Presentation .pptx
BSBFIN601 Training Delivery Presentation .pptx
 
Chapter 1 financial management – introduction & goals of the firm
Chapter 1 financial management – introduction & goals of the firmChapter 1 financial management – introduction & goals of the firm
Chapter 1 financial management – introduction & goals of the firm
 
1 - TheArtofReadingFinancialStatements-Level1-v1.pdf
1 - TheArtofReadingFinancialStatements-Level1-v1.pdf1 - TheArtofReadingFinancialStatements-Level1-v1.pdf
1 - TheArtofReadingFinancialStatements-Level1-v1.pdf
 
Financial reporting assignment help01.pptx
Financial reporting assignment help01.pptxFinancial reporting assignment help01.pptx
Financial reporting assignment help01.pptx
 
353798972-Entrep-PPT-1st-Qtr.pptx
353798972-Entrep-PPT-1st-Qtr.pptx353798972-Entrep-PPT-1st-Qtr.pptx
353798972-Entrep-PPT-1st-Qtr.pptx
 
Financial and managerial accounting the basis for business decisions 18th edi...
Financial and managerial accounting the basis for business decisions 18th edi...Financial and managerial accounting the basis for business decisions 18th edi...
Financial and managerial accounting the basis for business decisions 18th edi...
 
Module 15
Module 15Module 15
Module 15
 
Intro to ent&wht_bus_plan
Intro to ent&wht_bus_planIntro to ent&wht_bus_plan
Intro to ent&wht_bus_plan
 
9707 y10 sw_5_as
9707 y10 sw_5_as9707 y10 sw_5_as
9707 y10 sw_5_as
 
Chapter 4 writing a business plan(entrepreneurship)
Chapter 4 writing a business plan(entrepreneurship)Chapter 4 writing a business plan(entrepreneurship)
Chapter 4 writing a business plan(entrepreneurship)
 
Business plan template1
Business plan template1Business plan template1
Business plan template1
 
How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...
How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...
How To Write a Business Plan | Types Of Business Plan | What Is a Business Pl...
 
BUSINESS-PLAN-PPT.pptx
BUSINESS-PLAN-PPT.pptxBUSINESS-PLAN-PPT.pptx
BUSINESS-PLAN-PPT.pptx
 
Acco 20273-accounting-1
Acco 20273-accounting-1Acco 20273-accounting-1
Acco 20273-accounting-1
 
Fbarringer4e_04 (2).ppt
Fbarringer4e_04 (2).pptFbarringer4e_04 (2).ppt
Fbarringer4e_04 (2).ppt
 
Financial Accounting Feb22BSCM (1).pptx
Financial Accounting Feb22BSCM (1).pptxFinancial Accounting Feb22BSCM (1).pptx
Financial Accounting Feb22BSCM (1).pptx
 
Chapter 4.ppt
Chapter 4.pptChapter 4.ppt
Chapter 4.ppt
 
M8 - Setting up finance function irrespective of the size of the business
M8 - Setting up finance function irrespective of the size of the business M8 - Setting up finance function irrespective of the size of the business
M8 - Setting up finance function irrespective of the size of the business
 

Recently uploaded

How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
Celine George
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
paigestewart1632
 
The Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collectionThe Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collection
Israel Genealogy Research Association
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
Scholarhat
 
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
PECB
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Dr. Vinod Kumar Kanvaria
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
Priyankaranawat4
 
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold MethodHow to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
Celine George
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
Jean Carlos Nunes Paixão
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
TechSoup
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
TechSoup
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
Priyankaranawat4
 
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama UniversityNatural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Akanksha trivedi rama nursing college kanpur.
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Nicholas Montgomery
 
World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024
ak6969907
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Nguyen Thanh Tu Collection
 
Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
NgcHiNguyn25
 
How to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRMHow to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRM
Celine George
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
eBook.com.bd (প্রয়োজনীয় বাংলা বই)
 

Recently uploaded (20)

How to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP ModuleHow to Add Chatter in the odoo 17 ERP Module
How to Add Chatter in the odoo 17 ERP Module
 
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxChapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
 
Cognitive Development Adolescence Psychology
Cognitive Development Adolescence PsychologyCognitive Development Adolescence Psychology
Cognitive Development Adolescence Psychology
 
The Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collectionThe Diamonds of 2023-2024 in the IGRA collection
The Diamonds of 2023-2024 in the IGRA collection
 
Azure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHatAzure Interview Questions and Answers PDF By ScholarHat
Azure Interview Questions and Answers PDF By ScholarHat
 
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
 
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...
 
clinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdfclinical examination of hip joint (1).pdf
clinical examination of hip joint (1).pdf
 
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold MethodHow to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
 
Walmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdfWalmart Business+ and Spark Good for Nonprofits.pdf
Walmart Business+ and Spark Good for Nonprofits.pdf
 
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat  Leveraging AI for Diversity, Equity, and InclusionExecutive Directors Chat  Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
 
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama UniversityNatural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
 
World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024World environment day ppt For 5 June 2024
World environment day ppt For 5 June 2024
 
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
 
Life upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for studentLife upper-Intermediate B2 Workbook for student
Life upper-Intermediate B2 Workbook for student
 
How to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRMHow to Manage Your Lost Opportunities in Odoo 17 CRM
How to Manage Your Lost Opportunities in Odoo 17 CRM
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
 

Financial statements 1

  • 2. Financial statements www.fabeducation.com Financial statements are the scorecards of business. Managers and entrepreneurs need to be fully conversant with their content and structure to know where to look for information about business performance.
  • 4. Introduction This presentation provides essential information about financial statements and is designed to be used as part of the FaBEducation© Finance for Managers and Entrepreneurs programme. www.fabeducation.com
  • 5. www.fabeducation.com What you will get from this module By the end of this module you will: 1. Understand the value of the financial statements 2. Be able to reproduce the content and structure of a Profit and Loss account and a Balance Sheet from memory 3. Be able to explain the operating cash flow cycle in business and list the main sources of funding 4. Have completed a unique practice routine to understand the interplay between business transactions and the financial statements
  • 6. Why learn about financial statements ? Because they are the scorecards of business and understanding their purpose content and structure is the first step on the way to being able to communicate and use finance in business. www.fabeducation.com The Role of Finance - 1
  • 7. What Businesses do Businesses conduct all kinds of “Transactions” (finance-speak for an action) such as buying stock, selling goods, paying salaries, renting premises and so on. www.fabeducation.com Selling telephone Buying Rent Travel Wages and Salaries Loan Interest Capital Expenditure Insurance Light and heat New Loans Capital Loan repayments The Role of Finance - 2
  • 8. Two questions The primary role of Finance is to make sense of all these transactions and answer two questions. Are we making a profit? What is the overall financial position of the Business i.e. its Net Worth? And it does this by funnelling all the transactions into two statements or “scorecards”. www.fabeducation.com Balance sheetProfit and loss account The Role of Finance - 3

Editor's Notes

  1. Emphasise that all these terms will be mad e clear in session two “The Language of Finance”