Introduction to Financial Statements

Document Request for Financial Statements

Reports of Accountants

• Audit
• Review
• Compilation

Accounting Standards

• Generally Accepted Accounting Principals (“GAAP”)
• Generally Accepted Auditing Standards (“GAAS”)

Financial Statements

• Income Statement
• Cash versus Accrual
• Estimates

• Balance Sheet
• Historical Cost versus Current Value
• Goodwill
• Inventory Valuation

• Statement of Cash Flows
• Statement of Shareholders’ Equity
• Notes to Financial Statements

Analysis of Financial Statements