Understanding how to interpret financial statements is essential for the CSEC student as their examinations are graded under the proficiencies of Knowledge, Interpretation and Application. For businesses, understanding how to interpret financial statements is essential to knowing how well your business is performing. However, many people who start a business, as well as some seasoned entrepreneurs, take this for granted. They do not take this aspect of business seriously enough and this can lead to costly mistakes which could have been anticipated and avoided had they been preparing and reviewing their financial Statements. The aim of their manual or guide is to teach you how to read, interpret and prepare your financial statements. Financial Statements provide owners and other stakeholders (business partners, banks etc.) with the information necessary to understand and evaluate a business's performance.
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