1

• How is the cash flow statement different from the income statement? What is its purpose?
• If you had to make a personal financial statement, would it be an income statement or a cash flow statement? Explain your reasoning.

2

• How can investors and other third parties trust this information and why is trust so important for the company and our economy?
• The auditor has to issue an opinion at the end of an audit. It is an auditor's report and is always part of a set of audited financial statements. (Note that many companies divide the annual report into segments on their website, but the opinion is always included in the full report.) You have to review a financial statement of choice for this module. What kind of information does the auditor's report include?

3

• identify and briefly discuss two important applications of financial accounting.
• Which application could be the most beneficial to you as an employee, private person, investor, business owner, or other stakeholder? Explain.