Analysis should include determining an organization’s financial health by examining documents such as
- balance sheet
- income statement (profit and loss)
- cash flow statement.
Process/Skill Questions:
- What is the difference between an income statement and a balance sheet?
- What are the elements of a cash flow statement? How is it used?
- How often should a thorough analysis of financial documents be completed?
- What level of management is involved in financial analysis?