ABM: Concepts and Practice · Part C: Credit Management

Chapter 14: Financial statements

How a banker reads a borrower’s accounts: statements, ratios, cash flow, and the tricks that flatter.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 14.1The statements and the auditp. 185
• 14.2Ratios a banker usesp. 186
• 14.3Cash flow and funds flowp. 187
• 14.4Creative accounting and red flagsp. 188
• 14.5From analysis to a credit viewp. 189
• Exam traps and quick checksp. 190
• Practice: 16 questions in three roundsp. 191
• Answers, with every wrong option explainedp. 193
• Make it stickp. 195
• Chapter 14 on one pagep. 196

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.