Relation should include relating the definition and purpose of each element in a financial statement. It should also explain the significance of each of the following:

Total assets are greater than total liabilities.
Gross profit is positive vs. negative.
Net profit is positive vs. negative.
Currency transfer rates for multinational companies
Operating expenses
Depreciation

Process/Skill Questions:

How might the interpretation of a financial statement affect marketing mix decisions?
How might the interpretation of a financial statement affect product and/or service mix decisions?
How are financial statements used in the budgeting process?
How do financial statements help a company prepare tax returns?
How are financial statements used by marketing managers?
Who within an organization needs access to financial statements and why?