Title: Identify net worth and profit-and-loss (P&L) statements.
Course: Agricultural Business Fundamentals I (18201-I) > Section: Managing Financial Records and Reports

Identification should include purpose and interpretation of the following financial statements:

- Balance sheet
- Income statement
- Cashflow risk management

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 one’s net worth to determine loan qualification?
- What is the difference between current and non-current liabilities?
- What is meant by 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?