Nov 23, 2015 · Nonprofit Financial Ratios 1. Analyzing Financial Information Using Ratios Nonproﬁt leaders seeking to understand their organization’s ﬁnancial situation usually start by reviewing the ﬁnancial reports. Understanding the ﬁnancial information is the building block of any ﬁnancial discussion. Balance Sheet: Liabilities Accounts payable – Amounts payable to vendors and creditors for goods or services delivered to the organization are mentioned under this head. Grants payable – These are grant/donations promised by the nonprofit organization to other organizations or individuals. The Balance Sheet and Notes to the Financial Statements . Overview . This chapter covers the balance sheet in more detail than you likely encountered in your introductory accounting course. In addition, the topic of financial statement notes is included. The balance sheet is the most important financial statement to many users. A wealth of Balance Sheet Analysis. Now that you can answer the question what is a balance sheet. Let’s look at how to read a balance sheet. Investors, creditors, and internal management use the balance sheet to evaluate how the company is growing, financing its operations, and distributing to its owners.