The Income Statement - What a Banker Can Learn About a Borrower from Its Profit and Loss Statement
May 5, 2021 - CA USCompliance4All
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Overview: This topic will explore all aspects of an income statement and Loss Statement and how the information that a profit and loss statement contains about a borrower's operating performance can assist in making credit decisions. In particular, attention will be paid to those items that constitute cashflow in a profit and loss statement since those items determine repayment ability. The ways in which owners of businesses are compensated will also be examined as salaries are just one method of compensation.
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