chapter  1
18 Pages

FINANCIAL ACCOUNTING IN CONTEXT

It is important before we start that we establish some ground rules; put simply, finance is not just about numbers and you do not have to be a skilled mathematician to understand a set of financial statements. Instead you need to understand the guiding rules and principles that help compile and structure a set of accounts. Put simply, accounting is a way of showing to external stakeholders and internal management how well a business has performed over a period of time and its prospects for continuing to operate.