Financial Statements

01 Current vs non-current assets and liabilities How to classify items by when they turn into cash or fall due. 02 Accruals, outstanding expenses and prepaid expenses Record expenses and income in the period they belong to, not when cash moves. 03 Provisions and contingent liabilities Amounts set aside for known obligations whose exact amount is uncertain. 04 Year-end adjustments checklist Everything to post and check before finalising the year's accounts. 05 Trial Balance: what it proves and what it doesn't A Trial Balance checks arithmetic, not correctness. Here's how to read and fix it. 06 Why the Trial Balance matches but the Balance Sheet is still wrong Six kinds of errors that keep debits equal to credits, and how to catch them. 07 Trading and Profit & Loss Account: gross and net profit How gross profit and net profit are worked out, step by step. 08 Manufacturing Account Working out the cost of goods produced before the Trading Account. 09 Balance Sheet: structure and reading it What each section of the Balance Sheet means and what to check. 10 Cash Flow Statement (indirect method) Why profit and cash differ, and how the cash flow statement explains it. 11 Fund Flow Statement Sources and uses of long-term funds, and how working capital changed. 12 Receivables and payables ageing Group dues by how old they are, to chase collections and plan payments. 13 Working capital and the working capital cycle How much money is tied up in running the business, and how to free it. 14 Gross profit, net profit, margins and EBITDA Profit measures owners and banks look at, with formulas and an example. 15 Liquidity and solvency ratios: current, quick and debt-equity Can the business pay its short-term bills and carry its debt? 16 Turnover ratios: inventory, debtor and creditor How fast stock sells, customers pay and you pay suppliers. 17 Profitability ratios: GP and NP margin, ROCE, ROE How much profit the business earns on sales and on the money invested. 18 Break-even analysis How many sales you need before you start making a profit. 19 Month-end closing checklist Ten checks that keep your books clean every month, so year-end is easy.