A really really basic summary of chapter 3 (from my own unique view point) is that each of the 4 financial reports work together attempting to capture the realities of a business from 4 different 'angles' at a given point.
While financial reporting helps to give an overall picture of the position and progress of the company or lack therefore, these reports are basically only as good as the information contained within it and rely on the integrity of those putting them together.
Ratios and other analysis tools assist when looking deeper into financial statements however cannot always be stock standard relied on – each business reality is unique and therefore sometimes this would be like comparing apples with oranges……..just good food thought. (ha – I didn’t even mean that pun).
Megan
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