How to Read a Financial Report: Wringing Vital Signs Out of the Numbers [Paperback]

John A. Tracy CPA (Author)

Editorial Reviews

Product Description

Hidden somewhere among all the numbers in a financial report is vitally important information about where a company has been and where it is going. This is especially relevant in light of the recent corporate scandals. The sixth edition of the bestselling How to Read a Financial Reportis designed to help anyone who works with financial reports—but has neither the time nor the need for an in-depth knowledge of accounting—cut through the maze of accounting information to find out what those numbers really mean. Readers will receive a quick, but thorough introduction to financial reports, and learn how to decipher the information in them.

From the Inside Flap

How to Read a Financial Report Lurking somewhere amidst all the figures in a financial report is vitally important information about where a company has been and where it is headed. But without a guide to isolate and interpret those numbers, the dizzying array of columns and rows doesn’t add up to a hill of beans. That’s why thousands of professionals and savvy individuals have referred to this bestselling resource that shows anyone how to make sense of all those numbers. If you’re someone who works with financial reports or needs to understand them—but have neither the time nor the need for an indepth knowledge of accounting—this book will help you cut through the maze of accounting information to find out what those numbers really mean. It steers you quickly and painlessly through the basic accounting concepts and line-by-line explanations of the basic financial statement. Complete with a visual guide that leads you through the intricacies of financial reporting, How to Read a Financial Report shows you how the three essential parts of every financial report—the balance sheet, the income statement, and the cash flow statement—fit together and what it all means to you and your company. Updated throughout, this new edition addresses the many changes in the financial world in the past few years, including new pronouncements of the Financial Accounting Standards Board, new income tax laws, and emerging financial reporting problems. Also, all exhibits have been made easier to follow. Features updates on:

• Tax reform
• Recent FASB rulings
• Depreciation methods
• Spotting fraudulent reporting

--This text refers to the Hardcover edition.

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Product Details

• Paperback: 216 pages
• Publisher: Wiley; 6 edition (February 27, 2004)
• Language: English
• ISBN-10: 0471478679
• ISBN-13: 978-0471478676
• Product Dimensions: 9.8 x 6.4 x 0.7 inches
• Shipping Weight: 12.8 ounces
• Average Customer Review: 4.5 out of 5 stars  See all reviews (39 customer reviews)
• Amazon Bestsellers Rank: #390,733 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

80 of 82 people found the following review helpful:

5.0 out of 5 stars Well Written Overview of Financial Statements and Accounting, December 12, 2000

By	tim747 (Glenview, IL USA) - See all my reviews

This review is from: How to Read A Financial Report (Paperback)

This book is great for anyone ranging from beginner to intermediate knowledge of financial reports. I have taken accounting and finance classes in college. This book tells the same things that 600 page textbooks and hours and hours of lecture can tell you, but it does so in an easy to understand and concise manner.

Most important it explains the relationships clearly between the income statement, balance sheet, and cashflow statement. This book would be great for anyone starting an education in finance or for any investor trying to broaden their knowledge base. If you invest in stocks, you should learn how to read financial statements. This book will give you some much needed knowledge that you can use as you scour for companies to invest in.

This author takes pride in his writing. John A. Tracy is a professor of accounting, but his knack for concise explanations and the clear use of the English language is evident throughout.

54 of 55 people found the following review helpful:

5.0 out of 5 stars One of the most useful presentations of this topic ever., July 11, 1999

By A Customer

This review is from: How to Read a Financial Report: Wringing Vital Signs Out of the Numbers (Paperback)

I have used this book to teach people with absolutely no training in accounting to understand financial statements. It appeals to non-quantitative and quantitative audiences alike. Non-quantitative audiences appreciate the plain language in which the book is written. Quantitative audiences immediately see how financial statements are laid out from a modelling point of view and invariably start coding up spreadsheets. People who need to explain anything related to financial statements should thoroughly read this book to see how clearly this topic can be treated.

Another aspect of this book is the ratio of success-to-effort one gets out of reading this book. Professsor Tracy's experience and time spent thinking about this topic is clearly demonstrated by his ability to explain just enough to allow even the rank beginner to understand financial statements.

76 of 80 people found the following review helpful:

4.0 out of 5 stars GREAT BOOK BUT SOME PRIOR KNOWLEDGE WILL BE A PLUS!, July 11, 2001

By	Sandra D. Peters "Seagull Books" (Prince Edward Island, Canada) - See all my reviews (TOP 500 REVIEWER)    (REAL NAME)

This review is from: How to Read A Financial Report (Paperback)

As a teacher of business management, I have found the one component of training that often frustrates most students is understanding and preparing a cash flow statement, profit and loss statement and a balance sheet. This book is written in a manner which certainly simplifies the understanding of the statements, but it would definitely be a plus if the reader had some prior knowledge of basic accounting principles.

Financial statements are, for some, a challenge and one they can easily master with an understanding of basic accounting. For others with no prior knowledge of accounting, financial statements can be a nightmare. While this book will HELP TO SIMPLIFY the matter, without some previous experience the book may be quite confusing. First of all, one should at least be familiar with general accounting terminology. If you are, it will simplify this book enormously and make the learning experience more enjoyable. However, be prepared to sit down and devote your utmost concentration to the book. The subject matter is not one that can be mastered by skimming through the book in an evening or two. For many individuals, understanding financial statements is a course that takes months to completely understand. Some learn the process easily, others never master the challenge no matter how long or hard they try. The degree of success usually depends, in part, on apptitude, commitment and previous knowledge and experience of the reader.