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

  1. Financial Statement Introduction
  2. GAAP Principles, Assumptions and Considerations
  3. GAAP Presentation of Financial Statements
  4. Management Discussion and Analysis (MD&A) Update
  5. Sarbanes Oxley Overview
  6. Sarbanes-Oxley Section 302: ICFR
  7. XBRL (Extensible Business Reporting Language) Introduction to Basics - Updated
  8. XBRL - Connection to SOX 302/404 and Critical Roles
  9. Analyzing Financial Ratios - Solvency, Liquidity and Debt
  10. Analyzing Financial Ratios - Leverage
  11. Analyzing Financial Ratios - Performance And Efficiency
  12. Financial Statement Audit in Accordance with GAAS - General Standards
  13. Financial Statement Audit in Accordance with GAAS - Conducting the Audit
  14. Financial Statement Audit in Accordance with GAAS - Auditors' Report and Opinion
  15. Introduction to Accounting for Income Taxes Based on Income
  16. Practical Application For Accounting For Income Taxes Based On Income Part 1
  17. Practical Application For Accounting For Income Taxes Based On Income Part 2
  18. FASB Codification Research System
170 Reviews (730 ratings)

Reviews

5
Member's Profile
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).

5
Member's Profile
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.

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!

4
Member's Profile
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.

5
Member's Profile
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.

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
Anonymous Author
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.

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.

5
Anonymous Author
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

4
Member's Profile
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!

5
Anonymous Author
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.

5
Anonymous Author
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.

5
Anonymous Author
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.

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
Anonymous Author
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.

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
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.

5
Member's Profile
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.

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.

5
Anonymous Author
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.

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.

4
Anonymous Author
Quick to the point course that outlines the critical concepts to understand on the balance sheet, income statement, cash flow and retained earnings.

4
Anonymous Author
Course was helpful in providing basic fundamentals of financial statements. For introduction to the basic statements on a financial statement package

3
Member's Profile
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.

4
Anonymous Author
The instructor was very clear and concise. Information was presented in a manner that assisted the user to understand the material as presented.

3
Anonymous Author
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.

5
Anonymous Author
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!

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
great delivery by the instructor in comparing corporate financials to personal finance. It really helps drive the information home.

5
Anonymous Author
It was great and concise training module that brought you through the main sections of any standard set of financial statements.

1
Member's Profile
Please show more practical examples with t accounts to get an Idea of BS and IS. lease more examples regarding the cash flow.

5
Anonymous Author
Good overview of the financial reports. Covered the most important factors of the balance sheet process and other reports.

4
Member's Profile
The course provide a fundamental understanding on how financial statements are interconnected and what their purposes are.

4
Anonymous Author
Course provided solid introduction to financial statements...how they are different and how they interact with each other.

5
Member's Profile
I enjoyed the instructor's teaching style. I think anyone needing an accounting refresher would benefit from the course.

5
Anonymous Author
Very nice summary of Financial Statement for all beginners and a fresh reminder of what is expected from these documents.

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
This is a high-level overview of information that all CPAs already know, but it's a great refresher. Highly recommend

5
Anonymous Author
This course was very informative and i felt it very beneficial in outlining all aspects of the financial statements.

5
Anonymous Author
Very basic overview - nice for those wanting to start to understand accounting and the basic financial statements.

4
Member's Profile
I like the way the course was well explained and the fact that after the exam you get to review the work you did.

5
Anonymous Author
Good refresher on the financial statements. The coverage of the Statement of CashFlows was especially well done.

5
Anonymous Author
I liked the course because this was a refresher and straight forward. It was well taught and easy to keep track!

4
Anonymous Author
Very much a review for me. I find the instructor informative and easy to follow but the material was basic.

5
Anonymous Author
Good overview of all the different aspects of the income statement, balance sheet and statement of cash flows

4
Anonymous Author
Would have helped to see statements as talking through rather than all theortically as harder to hold in mind

5
Member's Profile
I liked how this course related the financial statements to our personal lives. It made it easy to follow.

4
Anonymous Author
Курс можно расширить и изучать его с примерами отчетности

5
Anonymous Author
This was very informative. I enjoyed the style. It provided very useful information. Thank you very much!

4
Member's Profile
Good basics on what the statements are typically used for. Will continue on with more in depth analysis.

4
Member's Profile
I thought the slides had too many words on them. I'd prefer more examples of actual types of statements.

5
Member's Profile
very clear and easily understood explanations by a knowledgeable expert with several years of experience

4
Anonymous Author
Great recap on interplay between the various financial statements. Good discussion on Footnote & MD&A.

4
Member's Profile
The questions really made me think. I was even questioning myself and I should really know this stuff.

4
Member's Profile
I enjoyed the class, but would've liked more in-depth review of what is in the financial statements.

Member's Profile
Good basic cource. I think visualized chart would help people to understand more clearly the concept

4
Anonymous Author
This was a good pop quiz on financial statements and the slides are a helpful resource. Thank you.

5
Anonymous Author
Good overview of financial statements for beginners. I found he course helpful and appreciate it!

3
Member's Profile
This is too basic for CPA's looking for CPE units. I'm surprised the class qualifies for CPE.

5
Anonymous Author
Great and interesting course for anybody interested about introduction to financial statement,

Member's Profile
not very useful for CPAs; overviews might be helpful for non-accounting or non-finance folk

4
Anonymous Author
Nice course, good as a start for accountants could have been better by adding some details

4
Anonymous Author
good refresher course, if you daily responsibilities do not involve a reporting aspect.

4
Anonymous Author
A good overview of the inter-relationships and fundamentals, explained in simple terms.

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.

5
Anonymous Author
It was good overview of inter-relationships between different statements. Thank you.

5
Member's Profile
Great review of the financial statements for CPE credit. Great professor and lesson.

5
Anonymous Author
Great course for beginners to help understand the purpose of financial statements.

5
Member's Profile
brief and concise description of financial statements' purpose and basic concepts

5
Member's Profile
This is my favorite instructor, and I can't wait to take the rest of her courses.

3
Anonymous Author
the course was a good introduction but the cashflow explanation was very short

4
Anonymous Author
Very basic course. Good for those with little to no experience in the topic.

5
Member's Profile
Good simple overview of the primary financial statements and their purposes.

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.

4
Anonymous Author
Question 4 of the final exam had a typo for the "None of the above" option

3
Member's Profile
I expected the course to be more intermediary but it seemed introductory.

4
Member's Profile
Good overview for non-financial individuals -- "basic" or beginning level

4
Anonymous Author
Great training. Instructor was knowledgeable. Would take from her again.

3
Member's Profile
This was an incredibly basic course, much like an introductory course.

4
Member's Profile
quick short and to the point information on the financial statements.

5
Anonymous Author
I enjoyed this course as it was easy to understand, clean and clear.

5
Anonymous Author
This course gave a clear understanding of the financial statements.

5
Anonymous Author
Interesting course and ver knowledgeable. I recommend it for others.

4
Member's Profile
The examples relating to personal financial statement is brilliant!

5
Member's Profile
Provided a good overview the financial statements & their purporse.

3
Anonymous Author
Course is fine for a general overview of the financial statements.

5
Anonymous Author
Clear and concise introduction to the basic financial statements.

2
Member's Profile
Information given was way too simple to qualify for CPE for a CPA

4
Member's Profile
This course is a good basic overview of the financial statements.

4
Anonymous Author
Informative overview of the relationship of fiancial statements.

5
Member's Profile
This was a great overview of the basics in financial statements.

5
Member's Profile
Good basic information about the basics of financial statements

5
Anonymous Author
Nice quick refresher on the basics of the financial statements.

4
Anonymous Author
This course is very high level, but might be helpful for some.

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
Anonymous Author
This course provided a good overview of financial statements.

5
Anonymous Author
A great refresher of financial statements and their purposes.

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!

3
Member's Profile
Reasonably well-put course, providing fundamental concepts.

5
Member's Profile
Good recap of the three financial statements and their uses

5
Anonymous Author
nice introduction to financials and impact on organization

5
Member's Profile
Great overview and excellent job at explaining principles.

5
Anonymous Author
Good easy course with some basics. Easy to follow overall.

5
Anonymous Author
Beginner course on understanding the financial statements.

5
Member's Profile
Lynn's financial statement intro course was well presented

4
Member's Profile
Good refresher as we enter YE on some important concepts.

5
Member's Profile
Course met all expectations as stated in the description

5
Member's Profile
Good review. A bit too general, but still good overall.

5
Anonymous Author
Great class if you like learning new things.............

3
Anonymous Author
This is a good introductory course for fresh graduates.

4
Anonymous Author
Agree about the "not" questions; Expected a deeper dive

4
Member's Profile
Gives a good look at the interaction of the statements.

5
Member's Profile
Materials are easy to follow, can skip directly to it.

5
Member's Profile
Good review on financial statements. Good instructor.

5
Member's Profile
Good course on the foundational financial statements.

3
Member's Profile
Good concise review, slides need to be spell checked.

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.

5
Member's Profile
Great course! It's easy to follow and very helpful

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 .
Course Questions and Answers(2 Questions)
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.

Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
Critical Concepts
  The Balance Sheet13:16
  The Income Statement 9:57
  Cash Flow3:26
  Footnotes and MD&A 9:44
CONCLUSION
  Course Summary4:06
Continuous Play
  Critical Concepts to Understand on the Balance Sheet, Income Statement, Cash Flow and Retained Earnings45:33
SUPPORTING MATERIALS
  Slides: Critical ConceptsPDF
  Critical Concepts Glossary IndexPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam