2. Understanding Financial Statements

  1. Daniel W. Halpin1 and
  2. Bolivar A. Senior2

Published Online: 25 AUG 2009

DOI: 10.1002/9780470548813.ch2

Financial Management and Accounting Fundamentals for Construction

Financial Management and Accounting Fundamentals for Construction

How to Cite

Halpin, D. W. and Senior, B. A. (2009) Understanding Financial Statements, in Financial Management and Accounting Fundamentals for Construction, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9780470548813.ch2

Author Information

  1. 1

    Purdue University

  2. 2

    Colorado State University

Publication History

  1. Published Online: 25 AUG 2009
  2. Published Print: 2 SEP 2009

ISBN Information

Print ISBN: 9780470182710

Online ISBN: 9780470548813

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Keywords:

  • accounting;
  • hierarchy;
  • balance sheet;
  • equation;
  • income statement

Summary

This chapter contains sections titled:

  • Introduction

  • Why Should You Care about Accounting?

  • Generally Accepted Accounting Principles

  • Cash and Accrual Bases: Two Ways to Look at Accounting

  • Cash Basis of Accounting

  • Accrual Basis of Accounting

  • Accounts

  • Account Hierarchy

  • Financial Reports

  • Balance Sheet Layout

  • Balance Sheet Account Categories in Detail

  • The Fundamental Accounting Equation

  • Asset Values

  • The Fundamental Equation and Owners' Risk

  • Balance Sheet for Fudd Associates, Inc.

  • Key Accounts

  • The Income Statement

  • Components of an Income Statement — More Details

  • The Statement of Cash Flows

  • Contract Backlog

  • Public Corporations

  • Review Questions and Exercises