Financial statements, as well as supporting records and reports, can provide valuable information for making informed credit decisions. This learning module provides the foundation for financial analysis by describing basic financial statements and accounting approaches. Topics covered include Types of Financial Statements, Accounting Issues, the Balance Sheet, Statement of Income, Statement of Retained Earnings, Statement of Cash Flows, Other Financial Reports, Audit Issues, Audit Reports and False Financial Statements. After successful completion of this learning module the student should understand the types of financial statements regularly produced by customers; the major components of the balance sheet, the statement of income, the statement of retained earnings, and the statement of cash flows; key aspects of other financial reports; the role of auditors and financial audits; and the differences in audit reports.
Toni Drake, CCE received her BBA Degree in Business Management from