From the course: Business Acumen for Project Managers

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Insights on finance and accounting documents for PMs

Insights on finance and accounting documents for PMs

From the course: Business Acumen for Project Managers

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Insights on finance and accounting documents for PMs

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- Accounting is the language of business. Understanding the common financial statements is an essential part of learning this language and developing business acumen. It's common for companies to create accounts for different things that they spend money on and for different sources of revenue. For example, there may be an account for travel and entertainment or T and E, and there may be an account for product revenue. The list of these different accounts is called the chart of accounts. Money is received and spent through transactions. Anytime you buy something, it's a transaction. Anytime you sell something, it's a transaction. Every transaction has a dollar value and is associated with an account on the chart of accounts. The list of all the transactions that a company makes is called the general ledger. If you want to know how much a company is worth at any point in time, then you need to look at the assets, the…

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