ORGANIZATION MEMBERS
Financial Statements Guide

You go to a meeting. They hand out the Income Statement and Balance Sheet. They are Greek to you. Not any more. This book furnishes the bookkeeping knowledge you lacked.

The Income Statement and Balance Sheet are explained in detail for each section and account, except as noted below. You are also made aware that a legal accounting method and inventory (if improperly adjusted and shown) can distort the financial position of the organization.

Skimming the book can help get an overview of the book. Then reading the detail needed can give you confidence to understand the Income Statement & Balance Sheet at your next meeting.

• Fast Track Income Statement Learning (pp 4 – 21 )
• Fast Track Balance Sheet Learning (pp 25 – 51 )
• Accrual vs Cash Method –Warning! (pp 53 – 57 )
• Inventory – falsely adjusted for more profit (pp 59 – 61 )
• Gross Profit – big management tool (pp 63 – 65 )

Though organizations normally do not have the Cost of Goods Sold and Gross Profit sections shown on the Income Statement (page 4), it is only shown, in this book, to create awareness that businesses will usually have these sections. There is a three page discussion (pp 63 – 65) for those interested.