How to read a Balance Sheet?

Hi,

I am an MBA and would like to know how to read Balance sheets and Income statement from a professional perspective.

I would like to use it for Investment purpose.

 

Thanks

Replies (12)

85 Views and not a single reply? ..

IT CAN'T BE SOLVED ON A SINGLE MAIL... U MUST PURCHASE THE BOOK NAMED "HOW TO READ A BALANCE SHEET" WHICH HAS BEEN WRITTEN BY AN ENGLISH AUTHOR... OR ELSE U MAY ASK THE TAX CONSULTANT OR CA'S...

There are no fixed formulas for reading a balance sheet and analying it . you ought to get into intricate details of overall as well as individual items of the balance sheet.

 just see financial raios and cash flow ratios-and yieds-capital and investment return 

hi,  if u want to investment purpose u munst have the konwledge of b/s. for u need to reed the percentage of Rate of return (Investment &profit), valuation of goodwill and shares, position of recivables and paybles and Reserve and surplus A/c.

we cant decribe all thing in one para.....u must have in deep knowlege...... technics of accountancy.... u can follow expert comment on b/s & p&l

to read a balance sheets u got to have knowledge of the accounting & financial ratios...... but they are not wholly reliable for investment purpose...

U r an MBA student and u must be having a basic knowledge of accounts.So apply that fundas & concepts in reading out the Balance Sheet.

hi

          firsty u must have basic knowledge of basic concept like bussness,bussinessman,income,exp.,assets,liabl and investment.for this you must have read basic concepts of accounting.After khow that you learn balance sheet and income statement easily.

u cant read balance sheet properly unless u dont have  thorough knowledge in the field of accontancy...

AGREE WITH SUDEPTA

FOR THAT YOU NEED TO HAVE PROFESSIONAL KNOWLEDGE

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