Summarize financial information and reports to monitor business performance and support decision making.

Summary should

  • consider data collected and efficiency factors
    • income statements
    • balance sheets
    • cash flow statements
    • inventory reports
    • break-even analysis
    • return-on-investment (ROI)
    • taxes
      • income
      • property
      • sales
      • employment
      • estate
    • observe efficiency factors attained, profit-and-loss (P&L) statements, partial budgets, and other financial assessments
    • evaluate efficiency, profitability, net worth, and financial ratios.

Process/Skill Questions:

  • What types of decisions might be made based on SAE records?
  • What are some examples of other records that SAE would keep?
  • How can accurate records prevent one from making rash financial decisions?
  • How can SAE records help improve recordkeeping in the future?
  • When should one evaluate SAE records?
  • What are some examples of efficiency factors that would affect the records?
  • What financial assessments should be observed when conducting a record analysis?
  • What are depreciable assets? How is depreciation calculated?
  • What is net worth? How is net worth calculated?
  • What information is needed before net worth can be determined?
  • What is a P&L statement?
  • What should be included in a P&L statement?