Finance: The Basics
THE FINANCIAL STATEMENTS CHAPTER OVERVIEW
Erik Banks • Finance: The Basics
We will start with an examination of corporate financial statements, focusing on: O Financial structure and reporting:
Erik Banks • Finance: The Basics
OUTLINE AND STRUCTURE OF THE BOOK
Erik Banks • Finance: The Basics
This financial picture is summarized in Figure 1.2. Figure 1.2 The complete financial picture
Erik Banks • Finance: The Basics
THE COMPLETE FINANCIAL PICTURE
Erik Banks • Finance: The Basics
EXTERNAL AND INTERNAL FACTORS
Erik Banks • Finance: The Basics
enough to adapt to changing circumstances. Figure 1.1 The three-stage cycle of the financial process
Erik Banks • Finance: The Basics
The three dimensions of the financial process are thus part of a continuous cycle: a firm examines its financial position, develops short-term and long-term plans and makes decisions to put the plans into motion.
Erik Banks • Finance: The Basics
FINANCIAL DECISIONS