Personal Financial Statements
Investors use financial statements to assess the financial condition and performance of companies. However, equally important is for investors to assess their own financial position through the use of personal financial statements, in particular a Balance Sheet and Income Statement.
Accounting and Financial Statements
Accounting is the language of business, and financial statements summarize the various underlying accounting entries. Accounting, especially through financial statements, allows us to understand a business and make better investment decisions, but it also allows us to improve our personal financial lives.