chapter  9
29 Pages


So far your studies through most of this book have focused on the preparation of accounts. However, as I have told you all along, the purpose is not to teach you how to become an accountant but to give you the knowledge, understanding and confidence to read a set of financial reports and, if you ever get the urge, to talk to and understand an accountant. Chapter 7 illustrated how all of the stages in the accounting process are managed and ultimately why the major statements are constructed – they even demonstrated how you could basically analyse the main financial statements. However, constructing accurate financial statements, although a brilliant skill in its own right, is only half the story. One of the real purposes of this book is to show you and help you understand what all the numbers actually mean.