# CTE Resource Center - Verso - Marketing, Advanced Task 896546683

CTE Resource Center - Verso

Virginia’s CTE Resource Center

Interpret financial statements.

Definition

Interpretation should address the various components, such as balance sheets, cash flow, income statements, return on marketing investment (ROMI), and inventory records.

Process/Skill Questions

  • What does a lender look for in a financial statement when considering a loan application for a new business?
  • To which financial statements would a stockholder want to have access?
  • What are the legal issues in preparing financial statements?
  • What are the differences between an income statement and a balance sheet?
  • How is a cash-flow statement used?
  • What is the difference between an asset and a liability?
  • What is the purpose of the balance sheet?
  • What are the various types of profit found on financial statements?
  • What are the benefits of having inventory records kept electronically and updated immediately?

Other Related Standards

National MBAResearch Standards-Business Administration

Acquire a foundational knowledge of accounting to understand its nature and scope.

 

Acquire a foundational knowledge of finance to understand its nature and scope.

 

Manage financial resources to ensure solvency.

 

Utilize planning tools to guide organization's/department's activities.