The preparation of the primary financial statements (Balance sheet, Income Statement and Cash Flow statement) can often seem a daunting task depending on the complexities of your organization. Yet proper preparation is critical to the overall understanding of a company’s core operations and their ability to be profitable.

Accountants are well schooled in this discipline. In today’s world there are many digital tools available to help the accountant prepare entries and create the financial statements. However, even with this ability it is key that individuals understand the various concepts and calculations that may come into play within each statement. It is also critical to have an understanding of the interrelationship of these statements.

In this course we work through each of the major financial statements and discuss not only the various accounts that make up those statements but also the process of preparing and reconciling those statements. Learners will come away with a refreshed understanding of the major financial statements and their linkage.

Learning Objectives
  • Discover and prepare a balance sheet, income statement, statement of shareholders’ equity, and statement of cash flows.
  • Explore and understand basic analytic ratios for the balance sheet, income statement, and statement of cash flows.
  • Explore and understand the components of notes to the financial statements.
  • Identify the need for and uses of supplemental information to the financial statements.
Last updated/reviewed: August 21, 2023
5 Reviews (46 ratings)


Member's Profile
This course takes you back to the beginning of your accounting knowledge. It reviews things that you thought you probably forgot, but didn't forget.

Anonymous Author
This is a great course on financial statements and things to do to prepare them.

Anonymous Author
Good refresher on financial statements and easy to follow course material

Anonymous Author
Comprehensive explanation of financial statements and their preparation.

Anonymous Author
Good refresher course on basic financial statements. Thank you

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 Questions and Answers(3 Questions)
Member's Profile

Good afternoon. I've just completed this class and have 2 concerns. 1) In the final exam, the question was: "Which of the following statements does the income statement close out to at the end of the period?". The answer options were: Balance Sheet; Statement of Cash Flows; Income Statement; and Equity Statement. I chose "Equity Statement" and the system selected "Statement of Cash Flows". Was this a system error, and if not, can you explain why the correct answer should've been SOCF? 2) My progress report shows 50% and I read the entire document. Thanks for your response.

Member's Profile

Actually the correct answer should be balance sheet so the system answer is wrong. I will have Illumeo correct it.

The income statement always closes out to the the balance sheet (in the equity accounts)

Member's Profile

The correct answer option updated in the question.

Instructor for this course
Course Syllabus
  Financial Statement Preparation - Balance Sheet, Income Statement and Cash Flow Statement (Text Based Course)PDF