Understanding financial statements - a review

Innovation in health care in many ways

Ateneo Professional Schools
Makati City
July 20, 2016

Understanding financial statement:

1.  From Slideshare

Understanding financial statements from Geni Whitehouse

2. Genesis of an enterprise



See how the circles become part of Financial Statement

3.  Basic Equation:

   1.  Sales - Cost =  GP

   2.  Assets  = Liabilities + Stockholders Equity

        Equity =   Assets -  Liabilities

  3.   Debit  -   Increases in Assets, Decrease in Liability,    Uses of Funds

        Credit -    Decreases in Assets,  Increases in Liability   Sources of Funds

 4.  Nominal  Accounts  -   Income Statement

      Real Accounts   -    Balance Sheet Account

5   Presentation of  Balance Sheet items are in order of liquidity and priority

6.  Order of Preparation:

     Income Statement

     Cash Flow

     Balance Sheet

Finance and cash management for entrepreneurs from Jorge Saguinsin

7.  GAAP

Generally accepted accounting principles from Jay Armocilla