The term “articulation” doesn’t really sound like an accounting term. However, understanding articulation is key to understanding accounting and dare I say the key to understanding business. Yes, it is that important in business! The quick answer to what is articulation, is that it is the interrelationship between the financial statements. However, that definition is…
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The objective of accounting is to provide outsiders, such as investors or lenders, some information on the strengths and weaknesses of the business. This is accomplished by offering financial statements. Since investors and lenders are outside of the business, they need a way to get information about what is going on inside the business to…
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It is often overlooked that the reports made by accountants are not made FOR accountants. Which is why understanding financial statements should definitely NOT be a job for the accountant but instead for the business person. Whether that business person own a small business or work as an executive for a multi-national corporation, it is…
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