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Accountants and finance personnel are schooled in the basics of the concept of financial statements during their educational years.  The focus is often on the calculations, format and purposes of the statements.  Once professionals enter the working world they find that the financial statements are truly an integral tool for managing and monitoring the financial health of an organization.

This course is focused on discussing the concepts of the primary financial statements utilized at every company: balance sheet, income statement, cash flow statement and retained earnings statements. Many professionals feel uncomfortable with trying to read and interpret the financial statements.  In reality, if you can read a nutrition label you can learn to read the financial statements.

Rather than focus on the computations and tactics of each of the statements, we will cover the important concepts of how the statements interact and relate to each other providing management with the critical information needed to manage financial stability of their organization.  It is important professionals recognize that no one statement tells the complete story, but combined they provide a powerful tool for management.

Learning Objectives

Balance Sheet 

  • Explore the components of assets, liabilities and equity and varying formats of presentation
  • Identify what “Balancing” the balance sheet means
  • Discover the relationship to Income statement components

Income Statement

  • Identify what comprises revenue
  • Explore varying types of income statements
  • Identify expenditures
  • Recognize Net Income/Loss and flow through to balance sheet

Statement of Cash Flows – The King!

  • Explore why the cash flow statement is King
  • Discover what the cash flow statement tells the company
  • Recognize how the cash flow statement links to the balance sheet and income statements
Last updated/reviewed: August 26, 2017

85 Reviews (307 ratings)Reviews

3
Member's Profile
This was an incredibly basic course, much like an introductory course.
5
Member's Profile
This course will benefit even those that are non-accountants because the subject matter and concepts were expalined in simple easy to understand manner. I like how the interrelationships of the BS, IC and CF statements were discussed. Thank you!
3
Member's Profile
Good basic understanding of financial statements - I recommend for 'first time' investors or those without experience in accounting or finance. Presenter does not clearly enunciate her words at times, this can be distracting.
5
Member's Profile
As a young 20 year old looking to get a career start in the finance career I found this course extremely helpful with the basics on understanding the Balance Sheet, Income Stament and Statement of Cash Flows.
4
Member's Profile
It was a very good overview of the different financial statements. I wish it would have gone a little more in depth but it is a great synopsis of the various statements.
5
Member's Profile
I liked that it was well organized. I'm surprised at how well it can work for my intro course. I think anyone teaching intro financial accounting would benefit.
4
Anonymous Author
She did a good job of giving a basic overview to accounting concepts ... was a little hard to focus since it was just an hour of talking, but overall helpful.
4
Member's Profile
A good course that clearly shows relationships between financial reports. Good for an accounting student or manager without an accounting education.
3
Member's Profile
Discussion around the Cash Flow Statement was too broad and did not explain with adequate detail how it is related to the IS and BS.
4
Member's Profile
The course provide a fundamental understanding on how financial statements are interconnected and what their purposes are.
5
Member's Profile
I enjoyed the instructor's teaching style. I think anyone needing an accounting refresher would benefit from the course.
3
Anonymous Author
This is a very basic explanation of the purposes of the various financial statements best directed at non-accountants.
5
Anonymous Author
Good overview of all the different aspects of the income statement, balance sheet and statement of cash flows
4
Member's Profile
I thought the slides had too many words on them. I'd prefer more examples of actual types of statements.
4
Member's Profile
The questions really made me think. I was even questioning myself and I should really know this stuff.
Member's Profile
Good basic cource. I think visualized chart would help people to understand more clearly the concept
3
Member's Profile
This is too basic for CPA's looking for CPE units. I'm surprised the class qualifies for CPE.
Member's Profile
not very useful for CPAs; overviews might be helpful for non-accounting or non-finance folk
Anonymous Author
Good basic review of the importance of each statement and how they relate to each other.
4
Anonymous Author
Instructor really simplifies purposes and contents of each statement or report covered.
3
Member's Profile
This class would be good for beginner accountants and a light refresher for others.
5
Member's Profile
A good basic introduction for those who have been away from the industry for a while.
3
Anonymous Author
the course was a good introduction but the cashflow explanation was very short
4
Anonymous Author
A clear introduction or refreshment of the basic elements of each report.
4
Anonymous Author
Fine course. I'd prefer less double negative questions for the final exam.
3
Member's Profile
Great job linking the information from the different financial statements.
3
Member's Profile
I expected the course to be more intermediary but it seemed introductory.
4
Member's Profile
quick short and to the point information on the financial statements.
5
Anonymous Author
This course gave a clear understanding of the financial statements.
4
Member's Profile
The examples relating to personal financial statement is brilliant!
3
Anonymous Author
Course is fine for a general overview of the financial statements.
3
Anonymous Author
It was a good presentation but, it was only basic information.
2
Member's Profile
I appreciate basic interpretation of the financial statements
4
Anonymous Author
Good for individuals with little or no accounting experience.
4
Member's Profile
This was a good overall synopsis of each part of the course.
5
Member's Profile
Very simple explanation of very complex reports. Thank you!
4
Member's Profile
Good refresher as we enter YE on some important concepts.
5
Member's Profile
Good review. A bit too general, but still good overall.
3
Anonymous Author
This is a good introductory course for fresh graduates.
4
Anonymous Author
Agree about the "not" questions; Expected a deeper dive
5
Member's Profile
Great basics for understanding financial statements
5
Member's Profile
Good overview, Footnotes section very informative.
4
Member's Profile
Basic course, but very well structured. I enjoyed.
4
Anonymous Author
very basic, I expected the course to dive deeper
5
Anonymous Author
It provided very clear and useful information.
4
Anonymous Author
Explains basic concept thoroughly and clearly
5
Anonymous Author
Good course with a good information and tone.
4
Anonymous Author
Very good information, basic but complete
4
Anonymous Author
Very brief overview of this topic.
4
Anonymous Author
Explain very basic of accounting.
4
Anonymous Author
Interesting look at statements.
5
Anonymous Author
basic accounting 101 course.
3
Member's Profile
Very basic if you're a CPA.
4
Anonymous Author
reinforced prior education
4
Anonymous Author
Informative. Good Review.
5
Member's Profile
Nice and striaghtforward.
5
Member's Profile
Good and simple class.
4
Member's Profile
Good basic knowledge
5
Member's Profile
Helpful information.
4
Anonymous Author
good information
4
Anonymous Author
nice intoduction
5
Anonymous Author
Good information
4
Anonymous Author
Good but basic.
4
Anonymous Author
Good oversight
5
Member's Profile
Great for all.
5
Anonymous Author
Good overview
4
Anonymous Author
Great stuff.
5
Anonymous Author
Informative
3
Anonymous Author
Very basic.
5
Anonymous Author
Looks good.
4
Anonymous Author
good review
5
Member's Profile
It was fine
5
Anonymous Author
Very clear
4
Anonymous Author
good one!
4
Member's Profile
good info
5
Member's Profile
Helpful
5
Member's Profile
great!
5
Member's Profile
great
4
Member's Profile
Good
4
Member's Profile
Good
5
Member's Profile
Good
5
Member's Profile
na
3
Anonymous Author
Ok
4
Anonymous Author
ok
Anonymous Author
5

Prerequisites

Course Complexity: Intermediate

Prerequisite: Exposure to basic accounting, including the main financial statements

Advanced Preparation: None

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .

2 QuestionsCourse Questions and Answers

User picture

Lynn,

I believe your question number 2 is flawed in that it specifically calls out "paid" taxes rather than taxes expensed, the difference likely held on the balance sheet. So, choice number 3, graded as the correct answer ( as not correct) is actually correct

Member's Profile

Actually - the answer is C but I agree it is confusing. The question asks what does the income statement NOT take into account. Notice in answer C it says the income statement Does Not take into account taxes paid by the company which is a false statement because it does. So this would be the answer. But yes the question is confusing. Thank you for pointjngnit out. I will adjust it.

Course Syllabus
INTRODUCTION AND OVERVIEW
Critical Concepts
  13:16The Balance Sheet
  9:57The Income Statement
  3:26Cash Flow
  9:44Footnotes and MD&A
CONCLUSION
  4:06Course Summary
Continuous Play
  45:32Critical Concepts to Understand on the Balance Sheet, Income Statement, Cash Flow and Retained Earnings
SUPPORTING MATERIALS
  PDFSlides: Critical Concepts
  PDFCritical Concepts Glossary Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM