How to Read a Financial Report

Höfundur: Tage C. Tracy (Útgáfa: 10)
How to Read a Financial Report

Kaup valmöguleikar

Learn how to read, understand, analyze, and interpret different types of financial reports In the newly revised and updated 10th Edition of How to Read a Financial Report, seasoned accounting, financial, and business consultant Tage C. Tracy guides readers through reading, understanding, analyzing, and interpreting various types of financial reports, including cash flow, financial condition, and profit performance reports.

This book also reveals the various connections between different financial metrics, reports, and statements, discusses changes in accounting and finance reporting rules, current practices, and recent trends, and explains how financial information can be manipulated, such as through inclusion or omission of certain KPIs. This bestselling guide uses jargon-simplified and easy-to-understand language to make the information accessible to all, regardless of finance or accounting background.

Updates to the 10th Edition include: Relevant terminology and issues critical to understand in today's economic environment. New material on loans, debt, and using financial reports and statements to understand performance. The connection of capital including debt and equity to the income statements and cash flow statements. Expanded financial analysis tools and ratios that provide a deeper understanding of a company's financial performance and strength.

A more in-depth overview of how company's may engineer financial results and how understanding cash flows can help root out fraud. An essential all-in-one guide on the art of reading a financial report and avoiding common pitfalls and misconceptions, How to Read a Financial Report earns a well deserved spot on the bookshelves of all business leaders and investors who want to be able to read and understand financial reports and statements like a professional.

Nánar um bókina

Útgefandi
Wiley Professional Development (P&T)
ISBN
9781394268719
Print ISBN
9781394268696
Format
ePub
Útgáfa
10
Höfundar
Tage C. Tracy
Tungumál
English
Útgefið
2024-10-09
Prent takmörkun á líftíma
100
Prent takmörkun
10
Afritunar takmörkun
2

Kaflar

  • Cover
  • Table of Contents
  • Title Page
  • Copyright
  • LIST OF EXHIBITS
  • PREFACE TO THE TENTH EDITION
  • Part One: FUNDAMENTALS
  • 1 ARMING YOU WITH ESSENTIAL KNOWLEDGE
  • What Is a Financial Report?
  • Financial Information and the Big Three Financial Statements
  • Let’s Speak the Proper Language
  • A Final Word before You Dive into the Rest of the Book
  • 2 STARTING WITH CASH FLOWS
  • Summary of Cash Flows for a Business
  • What Does the Cash Flows Summary Not Tell You?
  • Profit Is Not Measured by Cash Flows
  • Cash Flows Do Not Reveal Financial Condition
  • A Few Additional Thoughts to Keep in Mind
  • 3 BEDROCK FINANCIAL STATEMENT #1: THE INCOME STATEMENT
  • The Income Statement: A Closer Look
  • Reporting Profit Performance: The Income Statement
  • 4 BEDROCK FINANCIAL STATEMENT #2: THE BALANCE SHEET
  • Reporting Financial Condition: The Balance Sheet
  • 5 REPORTING CASH FLOWS
  • The Statement of Cash Flows
  • Cash versus Accrual Accounting
  • Financial Tasks of Business Managers
  • Part Two: CONNECTIONS
  • 6 FITTING TOGETHER FINANCIAL STATEMENTS
  • One Problem in Financial Reporting
  • Connecting the Dots
  • 7 SALES REVENUE AND ACCOUNTS RECEIVABLE
  • Exploring One Link at a Time
  • How Sales Revenue Drives Accounts Receivable
  • Accounting Issues
  • 8 COSTS OF SALES REVENUE, INVENTORY, AND ACCOUNTS PAYABLE
  • Acquiring Inventory on the Cuff
  • Accounting Issues: Accounts Payable
  • Holding Products in Inventory Until They Are Sold
  • Inventory Control
  • Accounting Issues
  • 9 OPERATING EXPENSES AND PREPAID EXPENSES
  • Paying Certain Operating Costs before They Are Recorded as Expenses
  • Accounting Issues: Using Prepaid Expenses to Massage the Numbers
  • 10 DEPRECIATION AND AMORTIZATION EXPENSE, AND FIXED AND OTHER LONG-TERM ASSETS
  • Overview of Expense Accounting
  • Up First, Depreciation Expense
  • Accumulated Depreciation and Book Value of Fixed Assets
  • Book Values and Current Replacement Costs
  • Intangible Assets
  • 11 OPERATING EXPENSES AND ACCOUNTS PAYABLE
  • Recording Expenses before They Are Paid
  • 12 ACCRUING LIABILITY FOR UNPAID EXPENSES
  • Recording Accrued Liability for Operating Expenses
  • Accounting Issues
  • 13 INCOME TAX EXPENSE AND ITS LIABILITY
  • Taxation of Business Profit
  • Accounting Issues
  • 14 INTEREST EXPENSE, ACCRUED LIABILITIES, AND LOANS PAYABLE
  • Bringing Interest Expense Up to Snuff
  • Type, Purpose, and Source of Loans
  • Accounting Issues
  • 15 NET INCOME, RETAINED EARNINGS, AND EARNINGS PER SHARE (EPS)
  • Net Income into Retained Earnings
  • Earnings per Share (EPS)
  • Accounting Issues
  • 16 CONNECTING THE CASH FLOW DOTS
  • Profit versus Cash Flow from Profit
  • Changes in Assets and Liabilities That Impact Cash Flow from Operating Activities
  • Profit before the Bottom Line
  • Completing the Statement of Cash Flows
  • Seeing the Big Picture of Cash Flows
  • Accounting Issues
  • Part Three: USING AND ANALYZING FINANCIAL STATEMENTS
  • 17 FOOTNOTES AND MANAGEMENT DISCUSSIONS
  • Financial Report Content in Addition to Financial Statements
  • Financial Statements: A Brief Review
  • Why Footnotes?
  • Two Types of Footnotes
  • Management Discretion in Writing Footnotes
  • Analysis Issues
  • 18 FINANCIAL STATEMENT RATIOS AND ANALYSIS: STRENGTH
  • Financial Reporting Ground Rules
  • Financial Statement Preliminaries
  • Benchmark Financial Ratios—Strength
  • Final Comments
  • 19 FINANCIAL STATEMENT RATIOS AND ANALYSIS: PERFORMANCE
  • Financial Performance versus Financial Strength
  • Two Cash Flow Ratios to Chew On
  • 20 FINANCIAL ENGINEERING
  • What Financial Engineering Is Not
  • What Financial Engineering Is
  • Common Types of Financial Engineering
  • Financial Engineering and QW Example Tech, Inc.
  • A Final Word
  • 21 FINANCIAL FRAUD, AKA COOKING THE BOOKS
  • Non-Number Fraud Flags
  • Financial Fraud Flags
  • Critical Thoughts on Fraud
  • The Moral of the Story
  • 22 CPAs AND FINANCIAL REPORTS
  • Certified Public Accountant (CPA)
  • From Preparation to Audit of Financial Reports by CPAs
  • Why Audits?
  • Do Auditors Discover Financial Reporting Fraud?
  • 23 BASIC QUESTIONS, BASIC ANSWERS
  • When You Buy Stock Does the Company Get Your Money?
  • Are Financial Reports Reliable?
  • Are Some Financial Statements Misleading and Fraudulent?
  • Should You Take the Time to Compute Financial Statement Ratios?
  • Why Read Financial Statements, Then, If You Won’t Find Information That Has Been Overlooked by Others?
  • The Financial Statements and Footnotes of Large Public Companies Would Take Several Hours to Read Carefully: What’s the Alternative?
  • Is There a Basic Test to Gauge a Company’s Financial Performance?
  • Do Financial Statements Report the Truth, the Whole Truth, and Nothing but the Truth?
  • Does Its Financial Report Explain the Basic Profit-Making Strategy or Profit Model of a Business?
  • Does the Market Price of a Public Company’s Stock Shares Depend Directly and Only on the Information Reported in Its Financial Statements?
  • Does the Balance Sheet of a Private Business Tell the Market Value of the Business?
  • Do Books on Investing and Personal Finance Refer to Financial Statements?
  • A Very Short Summary
  • ABOUT THE AUTHOR
  • INDEX
  • End User License Agreement