As statements of a company's financial condition, balance sheets contain information vital to owners, investors, and financial managers who are charged with assessing company performance. Often complex and difficult to interpret, balance sheets are nonetheless essential because they help pinpoint business problem areas. Understanding Balance Sheets explains in a clear and concise manner all the major aspects of this important business tool, making it yours to implement easily and successfully. Written by two financial and accounting authorities, this hands-on working reference enables you to understand a company's balance sheet within the context of its annual report. You'll find detailed information on exactly what a balance sheet is, how it works, and how it's used to increase profitability, the individual components: receivables, cash, inventory, long-lived assets, current payables, long-term debt, and equity, how these different elements relate to each other, how they come into being, and how they should be controlled in your business, and how accounting data is created, accumulated, and used in the development of financial statements.