Samenvatting Accounting and Finance for Non-Specialist 8th edition (Summary) P. Atrill

Samenvatting

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Chapter 1 Introduction 1
Chapter 2 The balance sheet 2
Chapter 3 The income statement 6
Chapter 5 The cash flow statement 9
Chapter 6 Ratios 12
Chapter 9 Budgeting 16
Chapter 12 Working capital 18
Appendix Extra definitions 21

, Chapter 1 INTRODUCTION


Accounting deals with collecting, analyzing and communicating financial information. This
information is used by managers, investors, banks, employees, government, suppliers and a lot of
other people.

Overview of the financial statements
The following financial statements provide a picture of the financial health of a business:

◦ Balance sheet; shows the accumulated wealth at a particular point in time.
◦ Income statement; shows the wealth generated over a particular period.
◦ Cash flow statement; shows the cash movements over a particular period.

These financial statements are often referred to as final accounts. The relationship is displayed in the
figure beneath.



Owners’  claim Income statement Owners’  claim

Balance sheet at the Balance sheet at the
start of the accounting end of the accounting
period period

Cash and cash Cash and cash
Cash flow statement
equivalents equivalents




1