Core Financial Statements and Logistics Decision-Making

This week’s topics

Core Financial Statements and Logistics Decision-Making

1. Statement of profit or loss
2. Balance sheet structure
3. Cash flow statement purposes
4. Financial appraisal for fleet acquisition
5. The INCOME STATEMENT Explained (Profit & Loss / P&L)
6. How The BALANCE SHEET Works (Statement of Financial Position / SOFP)
7. The CASH FLOW STATEMENT for BEGINNERS

What you will be able to do

• 1.3 Explain the purpose of the main financial statements.
• 1.4 Discuss the contribution of the finance and accounting function to business decision-making in a logistics business.

Activity

Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: explain the purpose of the main financial statements.

Study materials

Videos

• The INCOME STATEMENT Explained (Profit & Loss / P&L) · YouTube · Accounting Stuff · 11 min · for registered students
• How The BALANCE SHEET Works (Statement of Financial Position / SOFP) · YouTube · Accounting Stuff · 13 min · for registered students
• The CASH FLOW STATEMENT for BEGINNERS · YouTube · Accounting Stuff · 15 min · for registered students

Further resources

• Principles of Accounting, Volume 1: Financial Accounting, ch. 2: Introduction to Financial Statements · PDF · OpenStax, textbook chapter; pp. 67–114 · for registered students
• Financial Accounting, ch. 3: In What Form Is Financial Information Actually Delivered to Decision Makers Such as Investors and Creditors? · PDF · Saylor Academy, textbook chapter; pp. 62–99 · for registered students
• Principles of Finance 2e, ch. 5: Financial Statements · PDF · OpenStax, textbook chapter; pp. 141–174 · for registered students