Financial management lecture two, educational

       Lecture two chapter two, financial managements, page 27. Records, fundamental to finance, is about understanding financial statements and reports, today we are going to understand financial states. Financial statements will have first formal speaking with the annual report. And annual report is full complete document that corporation must report with usually with the regulator and report got ten sections, first one is verbal, in the verbal section usually provide analysis of what happen it provides explanations simple easy term so that investors can understand them.

        It provides the information for how the form performed, what kind of profits they made, what was unusual  what was an extraordinary and an important piece of that report is  the future, they expectations, the forecast and the future risks and the future challenges. Now these are many word many investors do not believe do not trust them. They lie and cheat, yes they do this to make them better in higher position. So financial statements are very important to be true. And financial statements provide accounting information, which must be audited? Information must be audited the auditing is a review of the accounting statements, by professional auditing companies which certifies those statements are true and are not lie and cheat. Statements must be audited and is causes what is called credibility.

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