The five reports and the questions they answer
Each report answers a different question. None of them tells the whole story alone.
| Report | The question it answers | Covers |
|---|---|---|
| Profit & Loss (Statement of Activities) | Did we make or lose money? | A period of time (a month, a year) |
| Budget v. Actual | Did we follow our plan? Where did we miss? | A period of time, compared with the budget |
| Balance Sheet (Statement of Financial Position) | What do we own and owe right now? | A single date |
| Aging Accounts Receivable | Who owes us money, and for how long? | A single date |
| Aging Accounts Payable | Whom do we owe, and for how long? | A single date |
Lessons 3 through 6 cover each report. Lesson 7 shows how they fit together.