Identification should include purpose and interpretation of

• balance sheet
• income/P&L statement
• cashflow data and risk management.

Identification should also include assets, liabilities, net worth, revenue, expenses, and net income.

Process/Skill Questions:

• What is meant by the net worth of a business?
• How is net worth calculated?
• What are liabilities? How are they identified?
• How would a loan institution use  net worth to determine loan qualification?
• What is the difference between current and non-current liabilities?
• What is non-cash income?
• What is an example of a non-cash expense?
• How does a business use a P&L statement?
• What is the difference between a cashflow and a P&L statement?
• When should one evaluate a P&L statement?

Teacher Resources:

• Personal Financial Statement, U.S. Small Business Administration
• Profit or Loss From Business form (Schedule C), U.S. Internal Revenue Service
• Instructions for Schedule C, U.S., Internal Revenue Service
• How to Read a 10-K/10-Q (company annual and quarterly reports), Investor.gov, U.S. Securities and Exchange Commission