A supplementary text for a variety of Business courses, including Financial Statement Analysis, Principles of Financial Accounting, Intermediate Accounting, Investments, Personal Finance, and Financial Planning and Analysis. Understanding Financial Statements, retains its reputation for readability, concise coverage, and accessibility while incorporating the many new requirements and changes in accounting reporting and standards. The text gives students the conceptual background and analytical tools necessary to understand and interpret business financial statements. Its ultimate goal is to improve students' ability to translate financial statement numbers into a meaningful map for business decisions and thus enable each student to approach financial statements with enhanced confidence.