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from Part I
Published online by Cambridge University Press: 05 June 2012
Summary of the foundations of accounting
In the first three chapters of this book, we have covered the foundations of accounting. Chapter 1 provided a high-level overview of the financial statements. Chapter 2 added depth by explaining the need for a balance sheet, income statement (profit and loss account) and cash flow statement, and by exploring how each of these statements is related to one another and what information each of them provides. Finally, Chapter 3 explained the nuts and bolts of accounting, providing insight into where the numbers come from and how they are fitted together.
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