In this session, I look at the three key accounting statements, the balance sheet, the income statement and statement of cash flows, and examine the three questions that accountants should be answering about a business:
1. What does the business own?
2. What does it owe?
3. How much did the business make in the period in question?
While I do not go into the details of each statement, I explain which question each one is designed to answer and how they are interconnected.