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Financial statements are crucial to managing the economic stability and financial well-being of organizations.  Most individuals understand the basic concepts of the balance sheet, income statement and cash flow statement.   Yet, many have difficulty interpreting the information.  Often, this is simply due to a lack of understanding of the relationship and purposes of each statement.

This course is for the non-financial professional who wishes to have a greater understanding of the purpose and use of the financial statements.  It can also be a tool for the professional just entering the financial profession and who is looking to gain a deeper insight into the aspects of preparing a company’s financial statements.

There are variances in the format, structuring and reporting of for-profit financial statements vs. not-for-profit (NFP) statements.  December 31, 2018 saw significant changes to NFP financial reporting.  Accounting Standard Update (ASU) No. 2016-14, Presentation of Financial Statements of NFP Entities, became effective, and it is essential for NFP organizations to understand the various aspects of the ASU (A separate course is listed by this instructor on the Illumeo platform that details the specific changes outlined in ASU 2016-14).  This course is meant to provide an overview of the basic concepts required in entity financial statements.  Since varying concepts exist between a for-profit organization and a NFP organization, we will utilize this platform to compare and contrast the major financial statements including:

  • Balance Sheet (For Profit)/Statement of Activities (NFP)
  • Income Statement (For Profit)/Statement of Operations (NFP)
  • Cash Flow Statement

Learning Objectives

  • Explore the  variance between the for-profit balance sheet and the not-for profit statement of activities
    • Identify what ”balancing" the balance sheet means.
    • Recognize the relationship of the balance sheet and statement of activities to the income statement and statement of operations.
  • Explore what comprises revenue in for-profit vs. not-for-profit (NFP) organizations.
    • Examine the variances between the income statement in a for-profit and the statement of operations in a NFP.
  • Explore why the cash flow statement is King.
    • Explore elements of the Cash Flow statement in both in for-profit vs. not-for-profit (NFP) organizations.
Last updated/reviewed: November 7, 2019

Included In Certifications

This course is included in the following Certification Programs:

14 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Accounting For Not-for-Profit Entities
  2. Accounting for Not-for-Profit Entities
  3. Identifying and Implementing the Proper Balance of Internal Controls
  4. Segregation of Duties for Core Business Processes
  5. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  6. Bookkeeping: Payroll And Expenses
  7. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  8. Effectively Managing and Controlling Travel and Entertainment (T&E) Expenses
  9. Management Internal Control Essentials
  10. Financial Statement Essentials for Not-for-Profits
  11. Not-for-Profit Financial Statements Part 2
  12. Not for Profit Financials - Focus on Net Assets
  13. Cyber Risk in Small-Medium Entities
  14. Fraud in Small-Medium Entities

1 Review (19 ratings)Reviews

5
Anonymous Author
Very good overview of the difference between for-profit and non-profit financial statements. I would recommend this to anyone who would like an introduction into non profits.

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

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 Syllabus
INTRODUCTION AND OVERVIEW
  6:32Introduction to Financial Statements Essentials – Balance Sheet, Income Statement, Cash Flow in a For-Profit ...
  17:30Balance Sheet for Profit
  2:40Statement of Changes in Equity
  10:06Statement of Financial Position NFP
  18:53Income Statement for Profit
  8:01Statement of Activities NFP
  6:57Statement of Cash Flow (SCF) for Profit
  6:25Statement of Cash Flow NFP
  5:52FS Relationships
  1:46Summary
CONTINUOUS PLAY
  1:24:41Financial Statements Essentials – Balance Sheet, Income Statement, Cash Flow in a For-Profit ... Full Video
SUPPORING MATERIALS
  PDFSlides: Financial Statements Essentials
  PDFFinancial Statements Essentials Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM