Summary of Richard A. Lambert's Financial Literacy for Managers

Please note: This is a companion version & not the original book. Sample Book Insights: #1 The 3 financial statements are the income statement, the cash flow statement, and the balance sheet. They provide information about a company's revenues, expenses, and profitability. #2 The three financial statements are the balance sheet, income statement, and cash flow statement. They provide a company's current financial status and a glimpse into its future.
They are useful in their own right, but understanding how they are linked is vital to assessing a company's strengths and weaknesses. #3 The owners' equity of a firm is the difference between its assets and its liabilities. It is the resources of the company that must be claimed by someone. If it is not someone else, it is the owners. #4 Companies' balance sheets start with their assets. Assets are the keys to sustaining the company.
Assets include financial, physical, and intangible resources. They are grouped into two categories, current and noncurrent.