Analysing business account

 In fact, we should call this Part as a business analysis. In the Financial data section, we dealt with the basic accounting documentation, which consists of the balance sheet, the income statement and the Cash Flow statement.
Just to repeat, the balance sheet shows the company's financial position at a given point in time. It's a sort of photo of time. It is an overview of the assets owned by the company at that moment and an adequate overview of the resources they are funded.

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Why understand financial ratios. 

Many knowledgeable economists will tell you "ratios will rarely give you a definite answer." And I must to say that they are right. But What is often much more important, the ratios help you to put the right Questions.

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