At the end of this chapter readers will be able to:

explain the composition of a balance sheet and discuss its key items

understand the ways in which assets can be valued, and identify the problems that arise from a loss value through depreciation

describe the structure of a profit and loss statement, being careful to distinguish between operating profits and losses and net profits and losses

articulate the details of a cash flow statement, and the significance of its division into cash movement linked to operating, investment and financing activities.