This module contains the following topics: balance sheets, Income statements, cash flow statements. It explains the use of financial statements and the information provided by them. It explains the accounting equation and the effect of basic transactions of a small business on the accounting equation. It summarizes information through the preparation of basic financial statements. Furthermore, the module provides practice of basic book-keeping techniques such as, journal debit and credit entries. Finally, it explains the role of time value of money in finance and the application of the concept to personal finance problems.