B Buffs

B Buffs

A Guide to Financial Statements

Magnifying glass focusing on the title Balance Sheet, representing analysis of financial statements

At its core, the accounting equation forms the foundation of all business accounting. In practice, accountants record every financial activity according to this principle and then summarize these activities in four essential financial reports: the Balance Sheet, Income Statement, Statement…

Overview of the balance sheet

Accounting Equation

In our previous post, we explored the accounting equation and the four main financial statements, including their core parts and how they relate. Today, we’ll examine a real company’s financial statements—Microsoft’s—to see these relationships in action. Where to Find the…