1 CPE 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.
This course is an introduction to concepts related to the balance sheet income statement and cash flow statement. The focus audience is non-financial managers, staff accountants, operational managers and other professionals who are looking to get a basic understanding of the critical financial statements, their purpose and use.
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 4, 2023
Included In Certifications
This course is included in the following Certification Programs:
18 CoursesFinancial Statement Preparation, Reporting and Auditing Certification
- Financial Statement Introduction
- GAAP Principles, Assumptions and Considerations
- GAAP Presentation of Financial Statements
- Management Discussion and Analysis (MD&A) Update
- Sarbanes Oxley Overview
- Sarbanes-Oxley Section 302: ICFR
- XBRL (Extensible Business Reporting Language) Introduction to Basics - Updated
- XBRL - Connection to SOX 302/404 and Critical Roles
- Analyzing Financial Ratios - Solvency, Liquidity and Debt
- Analyzing Financial Ratios - Leverage
- Analyzing Financial Ratios - Performance And Efficiency
- Financial Statement Audit in Accordance with GAAS - General Standards
- Financial Statement Audit in Accordance with GAAS - Conducting the Audit
- Financial Statement Audit in Accordance with GAAS - Auditors' Report and Opinion
- Introduction to Accounting for Income Taxes Based on Income
- Practical Application For Accounting For Income Taxes Based On Income Part 1
- Practical Application For Accounting For Income Taxes Based On Income Part 2
- FASB Codification Research System
168 Reviews (720 ratings)
Reviews
Anonymous
()
try valuable information on FS presentation and how the different statements are interconnectedd. Also touches on the importance of footnotes which is very true in practice.
Leonardo Lopes
(Financial Assistant at Osf Digital)
I have definately enjoyed the approach as a whole, starting on the basics, presenting the critical concepts, then going over those concetps into a detailed way. That'd would be nice to have subtitiles so that we can check if the case (non-native English speakers like me may enjoy this).
Ana Carolina Adriano
(Finance Analyst at Osf Digital)
I enjoy a lot this course and I think it was very important for all those ones to work in or with the finance. I have some suggest to put the subtitles in all those videos because, for us a non-English native speaker, could be difficult for some works, specially for the new ones.
MARIA LUISA DE GUZMAN
(Manager - Billing Staff & Financial .. at Harbor Rail Services of California)
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!
Thomas Simkiss
(Director of Cloud Solutions at Creoal Consulting)
This is a great course for beginners , those that just got your CPA, or for more experienced CPAs it provides a very basic refresher. When you aren't preparing statements everyday, it is great to have a basic course for blocking and tackling.
Tonya Muszall
(Associate Accountant at Charter)
I thought this course was concise and well put together. It helps if you have a basic understanding of accounting, but Lynn provided real life examples (in case you don't). She explained the relationships in an easy-to-understand format.
Vicki Hunter
(- at PS)
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.
Anonymous
()
The class was easy to understand and offered all the basics needed for someone completely new to financial statements. Anyone interested into getting into the field of finance or accounting should take this course first.
Benjamen Adams
(Not Provided at Adams Group)
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.
Anonymous
(disabled)
The course is a great overview of the different type of financial statements. The instructor does a great job in explaining these statements and gives real life information. Great example of cash flows
Shuting He
(Risk manager at China Eastern Airlines leasing)
The concepts here are foundamental, and it is basic to understand the balance sheet、income statement、cash flow, which will help management to run the business. Thanks for Ms.Lynn' great work!
Anonymous
(Snr Accounting Consultant, CPA)
Professor Fountain, another nice course from you as usual! It is very important to have a foundational understanding of the financial statements. Otherwise accounting will not make sense.
Anonymous
()
Good refresher on income statements providing a high-level overview of the relationships between the statements without spending too much time on the technical aspects of each statement.
Timothy Halliday
(Consulting Senior at EKS&H)
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.
Anonymous
(CFO)
This course provided excellent information regarding the financial statements and how they relate to one another, as well as the importance of footnotes and the MD&A.
Thomas Hayes
(Clinical Associate Professor at University of Arkansas)
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.
Anonymous
(Sr Accountant Lead)
The title of the course is true to its word in that it's a very basic introduction class. So, if you're not familiar with the reports its a good course to take.
Lawrence Hirsch
(Controller at Builders design)
Thank G-d for Lynn. She is my favorite presenter and always bring a new perspective when I think I know it all. Thank you Lynn for another great presentation.
Anonymous
(Assistant Controller)
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.
Anonymous
(Accountant)
I thought this course was very interesting and helpful. I thought the instructor explained the topic very well. I would recommend this course to others.
Kevin Murray
(Business Partner - Strategic Projects at The Wesson Group)
A good course that clearly shows relationships between financial reports. Good for an accounting student or manager without an accounting education.
Anonymous
(Consultant)
Quick to the point course that outlines the critical concepts to understand on the balance sheet, income statement, cash flow and retained earnings.
Anonymous
(Senior Manager)
Course was helpful in providing basic fundamentals of financial statements. For introduction to the basic statements on a financial statement package
Antonia Doernte
(Manager Finance at Novelis)
I would have expected that the items that are considered in Cash Flow Statement are summarized.
It is a good overview, but could be more detailed.
Anonymous
()
The instructor was very clear and concise. Information was presented in a manner that assisted the user to understand the material as presented.
Anonymous
()
The presenter’s introduction is a bit long and the course is a bit slow. Very detailed course. Good for beginner with no understanding at all.
Anonymous
(Compass Consultant)
The course was a nice overview of the financial statements. This is more of a beginners course, but it never hurts to have a refresher!
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.
Kenneth Bruch
( at Ultradent Products, Inc.)
great delivery by the instructor in comparing corporate financials to personal finance. It really helps drive the information home.
Anonymous
(Senior Controller)
It was great and concise training module that brought you through the main sections of any standard set of financial statements.
Janika Schmeiser
(SOX Consultant at Carnival Corporation Internal Audit)
Please show more practical examples with t accounts to get an Idea of BS and IS. lease more examples regarding the cash flow.
Anonymous
(Specialist II)
Good overview of the financial reports. Covered the most important factors of the balance sheet process and other reports.
Jordann Hoo Jiun Horng
(Senior Internal Auditor at OCLARO INC)
The course provide a fundamental understanding on how financial statements are interconnected and what their purposes are.
Anonymous
(Sr. Accountant)
Course provided solid introduction to financial statements...how they are different and how they interact with each other.
Tracy Meehan
(- at Mercedes)
I enjoyed the instructor's teaching style. I think anyone needing an accounting refresher would benefit from the course.
Anonymous
(Corporate Controller)
Very nice summary of Financial Statement for all beginners and a fresh reminder of what is expected from these documents.
Anonymous
(Insurance Broker)
This is a very basic explanation of the purposes of the various financial statements best directed at non-accountants.
Anonymous
(Controller)
This is a high-level overview of information that all CPAs already know, but it's a great refresher. Highly recommend
Anonymous
(Accountant)
This course was very informative and i felt it very beneficial in outlining all aspects of the financial statements.
Anonymous
()
Very basic overview - nice for those wanting to start to understand accounting and the basic financial statements.
Roger Brugger
(CEO at Visions Africa Ltd)
I like the way the course was well explained and the fact that after the exam you get to review the work you did.
Anonymous
()
Good refresher on the financial statements. The coverage of the Statement of CashFlows was especially well done.
Anonymous
(Director of FInance)
Very much a review for me. I find the instructor informative and easy to follow but the material was basic.
Anonymous
(CFO)
Good overview of all the different aspects of the income statement, balance sheet and statement of cash flows
Anonymous
(Internal Auditor)
Would have helped to see statements as talking through rather than all theortically as harder to hold in mind
Melissa Hanson
(Associate Manager, Financing Services at Stryker)
I liked how this course related the financial statements to our personal lives. It made it easy to follow.
Anonymous
(internal auditor)
Курс можно расширить и изучать его с примерами отчетности
Anonymous
()
This was very informative. I enjoyed the style. It provided very useful information. Thank you very much!
Chere Bramer
(Consultant at CLBM Consulting, LLC)
Good basics on what the statements are typically used for. Will continue on with more in depth analysis.
Matt Golden
(Financial Analyst at Stephen Gould Corporation)
I thought the slides had too many words on them. I'd prefer more examples of actual types of statements.
DEBORAH CAYLOR
(Accounting Manager at self)
very clear and easily understood explanations by a knowledgeable expert with several years of experience
Anonymous
(Senior Accountant)
Great recap on interplay between the various financial statements. Good discussion on Footnote & MD&A.
Regina (Davis) Foxx
(Business Credit Manager at Milliken & Company)
The questions really made me think. I was even questioning myself and I should really know this stuff.
Cesar Castillo
(Auditor at Loews Corporation)
I enjoyed the class, but would've liked more in-depth review of what is in the financial statements.
Yoshihiro Nishimura
(Director of Finance, Coporate Business F.. at WACOM Co., Ltd.)
Good basic cource. I think visualized chart would help people to understand more clearly the concept
Anonymous
()
This was a good pop quiz on financial statements and the slides are a helpful resource. Thank you.
Anonymous
(CPA)
Good overview of financial statements for beginners. I found he course helpful and appreciate it!
Lilian Dendrinos
(consultant at DLC Group)
This is too basic for CPA's looking for CPE units. I'm surprised the class qualifies for CPE.
Anonymous
(IT Advisory Snr. Associate)
Great and interesting course for anybody interested about introduction to financial statement,
Brett Peterson
(Consultant at DLC Group)
not very useful for CPAs; overviews might be helpful for non-accounting or non-finance folk
Anonymous
()
Nice course, good as a start for accountants
could have been better by adding some details
Anonymous
(Accounting Manager)
good refresher course, if you daily responsibilities do not involve a reporting aspect.
Anonymous
(Assistant Accountant)
A good overview of the inter-relationships and fundamentals, explained in simple terms.
Anonymous
(Bookkeeper)
Good basic review of the importance of each statement and how they relate to each other.
Anonymous
(Jr Staff Accountant)
Instructor really simplifies purposes and contents of each statement or report covered.
Devery Adair
(CFO at PLI Industries LLC)
This class would be good for beginner accountants and a light refresher for others.
Corey Masters
(Accountant, Internal Auditor, Risk Speci.. at Self)
A good basic introduction for those who have been away from the industry for a while.
Anonymous
(Senior Accountant)
It was good overview of inter-relationships between different statements. Thank you.
Maddison Lopez
(Finance Manager at KB Home)
Great review of the financial statements for CPE credit. Great professor and lesson.
Anonymous
(Finance Director)
Great course for beginners to help understand the purpose of financial statements.
Halina Kovel
(Sr Revenue Accountant at Yelp)
brief and concise description of financial statements' purpose and basic concepts
Bryan Chamberlain
(Controller at N/A)
This is my favorite instructor, and I can't wait to take the rest of her courses.
Anonymous
(Not Provided)
the course was a good introduction but the cashflow explanation was very short
Anonymous
(-)
Very basic course. Good for those with little to no experience in the topic.
Anonymous
(CPA)
A clear introduction or refreshment of the basic elements of each report.
Anonymous
(Accountant)
Fine course. I'd prefer less double negative questions for the final exam.
Michael Ward
(Head of Global Internal Audit at Mylan)
Great job linking the information from the different financial statements.
Anonymous
(Advisor)
Question 4 of the final exam had a typo for the "None of the above" option
Beckie Perlupo
(VP Assistant Treasurer & Controller at Workers Credit Union)
I expected the course to be more intermediary but it seemed introductory.
Jeanne Chase
(Manager of Budget at EBMUD)
Good overview for non-financial individuals -- "basic" or beginning level
Anonymous
(Senior Financial Analyst)
Great training. Instructor was knowledgeable. Would take from her again.
Janine Korovesis
(Controller at Google)
This was an incredibly basic course, much like an introductory course.
Jeff Nelson
( at A.O. Smith Corp.)
quick short and to the point information on the financial statements.
Anonymous
(Accounts Receivable)
I enjoyed this course as it was easy to understand, clean and clear.
Anonymous
(Staff Accountant)
This course gave a clear understanding of the financial statements.
Anonymous
(Auditor)
Interesting course and ver knowledgeable. I recommend it for others.
Jenica Roma De Vera
(General Ledger Accountant at Netsuite Philippines Inc.)
The examples relating to personal financial statement is brilliant!
Jennifer Miller
(Senior Accountant at Bookminders)
Provided a good overview the financial statements & their purporse.
Anonymous
(Controller)
Course is fine for a general overview of the financial statements.
Anonymous
(SVP)
Clear and concise introduction to the basic financial statements.
Patricia Galletta
(Associate Professor at CUNY-College of Staten Island)
Information given was way too simple to qualify for CPE for a CPA
Julia Misaki
( at Attivo Partners)
This course is a good basic overview of the financial statements.
Anonymous
(Senior Accountant)
Informative overview of the relationship of fiancial statements.
Timothy Goodrich
(Vice President at BentallGreenOak)
This was a great overview of the basics in financial statements.
Tyler Ellens
(Staff Acountant at Evenhouse & Co. P.C.)
Good basic information about the basics of financial statements
Anonymous
()
Nice quick refresher on the basics of the financial statements.
Anonymous
()
This course is very high level, but might be helpful for some.
Anonymous
(General Accountant)
It was a good presentation but, it was only basic information.
Wilson Karanja
(Chief Executive Officer at Springboard Capital Ltd)
I appreciate basic interpretation of the financial statements
Anonymous
(Director - Transaction Services)
Good for individuals with little or no accounting experience.
Anonymous
(Associate Director)
This course provided a good overview of financial statements.
Anonymous
()
A great refresher of financial statements and their purposes.
Monica Johnson
(Consulting Staff at EKS&H)
This was a good overall synopsis of each part of the course.
Very simple explanation of very complex reports. Thank you!
Muhammad Baig
(Managing Director at N/A)
Reasonably well-put course, providing fundamental concepts.
Maxwell Hassenstein
( at NeoGenomics)
Good recap of the three financial statements and their uses
Anonymous
()
nice introduction to financials and impact on organization
Katherine Hart
(None at Not Applicable)
Great overview and excellent job at explaining principles.
Anonymous
(Assistant Controller)
Good easy course with some basics. Easy to follow overall.
Anonymous
(Director)
Beginner course on understanding the financial statements.
Abraham Minto
( at Abraham Minto LLC)
Lynn's financial statement intro course was well presented
George Welch
(Staff Accountant at Correct Care Solutions)
Good refresher as we enter YE on some important concepts.
Kendra Willson
( at SSA PC)
Course met all expectations as stated in the description
Tania Roberts
(Revenue Accountant at OEConnection, LLC)
Good review. A bit too general, but still good overall.
Anonymous
(Consultant)
Great class if you like learning new things.............
Anonymous
(Senior Accountant)
This is a good introductory course for fresh graduates.
Anonymous
(Senior Accountant)
Agree about the "not" questions; Expected a deeper dive
Keith Baker
(Data Analyst at Charter Communications)
Gives a good look at the interaction of the statements.
Arleen Kearns
( at Charles Schwab)
Materials are easy to follow, can skip directly to it.
Roxane Wells
(Senior Manager at Stevenson Smith CPA's LLC)
Good review on financial statements. Good instructor.
Sean Flynn
(Accounting Manager at Rosemawr Management)
Good course on the foundational financial statements.
Craig Farabaugh
( at Albireo Energy)
Good concise review, slides need to be spell checked.
Joanne (Szkapiak) Baginski, ..
(Transaction Advisory Services Partner at EKS&H)
Great basics for understanding financial statements
Terri Salazar-Rodriguez
(None at None)
Good overview, Footnotes section very informative.
Antonio Crawford
(Senior Internal Auditor - Budget/Busines.. at Individual)
Basic course, but very well structured. I enjoyed.
John Kim
(Accountant at Pepsico, Inc.)
Great course! It's easy to follow and very helpful
Anonymous
(CFO)
very basic, I expected the course to dive deeper
Anonymous
(n/a)
It provided very clear and useful information.
Anonymous
(Associate with Two Degrees)
Explains basic concept thoroughly and clearly
Anonymous
(-)
Good course with a good information and tone.
Anonymous
()
Very good information, basic but complete
Anonymous
(-)
Very brief overview of this topic.
Anonymous
(Assistant Accounting Manager)
Explain very basic of accounting.
Anonymous
()
Interesting look at statements.
Anonymous
(Finance)
basic accounting 101 course.
Rachel Scott
(- at -)
Very basic if you're a CPA.
Anonymous
(Fiscal Officer)
reinforced prior education
Anonymous
(Controller)
Informative. Good Review.
Simon Adell
(Chief Financial Officer at Undisclosed)
Nice and striaghtforward.
Niketa Patel
(Oracle Financials Analyst at N/A)
Good and simple class.
Zarksis Italia
(Director Finance at Ensco)
Good basic knowledge
Nicole Johnson
(Staff Consultant at EKS&H)
Helpful information.
Anonymous
(Accountant)
good information
Anonymous
(-)
nice intoduction
Anonymous
(None)
Good information
Anonymous
(Chief Financial Officer)
Good but basic.
Anonymous
()
Good oversight
Theodore Zeck
(Certified Public Accountant at Theodore R. Zeck, CPA)
Great for all.
Anonymous
(CPA/Investment Advisor)
Good overview
Anonymous
(Salaried Consultant)
Great stuff.
Anonymous
(NA)
Informative
Anonymous
(Self employed)
Very basic.
Anonymous
(Accountant II)
Looks good.
Anonymous
()
good review
Paul Phillips
(Finance at None)
It was fine
Anonymous
(Consultant)
Very clear
Anonymous
(Senior Auditor)
good one!
April Jenkins
(Director of Financial Reporting at EPR Properties)
good info
Haley Gismondi
(CPA - Fund Accounting at Technology Crossover Ventures)
Helpful
Vahé Hovakimian
(Financial Analyst at Great Place to Work Institute)
great!
trisha coady
(None at None)
great
Patrenia McAbee
(Owner at McAbee Consulting)
Good
trevor sinkinson
(Vice President Finance EMEA & ASIA P.. at Gilbarco Veeder Root)
Good
Max Davis
(Project Manager at Barclays)
Good
Jacob Petersen
(Financial Analyst at DLL Group)
na
Anonymous
(Consultant)
Ok
Anonymous
(Controller for Americas BU)
ok
Anonymous
(Sole Practitioner)
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
.
Course Questions and Answers(2 Questions)
Lynn FountainCPA, CGMA, CRMA, MBA, Consultant, Author, Trainer
About Illumeo
Platform
Resources
Contact Us
- Email: info@illumeo.com
- Phone: 408-400-3993
- Adress: 1608 W Campbell
- Av #221, Campbell, CA 95008
© 2024 Illumeo, Inc.
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
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.