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The financial statements prepared by companies yield the same benefits as the financial disclosures provided by mortgage applicants. Financial statement information provides potential lenders and investors with a reliable basis for evaluating the past performance and future prospects of a company. Because financial statements are used by so many different groups (investors, creditors, managers, etc.), they are sometimes called general-purpose financial statements. The three primary financial statements are the balance sheet, the income statement, and the statement of cash flows.  These statements provide answers to the following questions:

1. What is the company’s current financial status?

2. What were the company’s operating results for the period?

3. How did the company obtain and use cash during the period?

To adequately answer the question of how a company is doing, one must have a working knowledge of financial statements. In this course, you learn that the financial statements are summary reports that show how a business is doing and what its successes and failures are. The financial statements covered in this course are the same as those used every day by millions of business owners, investors, and creditors to evaluate how well or poorly organizations are doing.

Hopefully, you come away from this course convinced that the purpose of accounting is not to fill out dull reports that are then filed away in dusty cabinets, but rather to prepare summary financial performance measures to be used as the basis for thousands of economic decisions every day.

Learning Objectives

  • Discover the purpose of accounting, and recognize its role in business and society. 
  • Identify the primary users of accounting information. 
  • Explore the basic elements, uses, and limitations of the balance sheet. 
  • Explore the basic elements and uses of the income statement. 
  • Explore the categories and uses of the statement of cash flows and see how the primary financial statements tie together. 
  • Describe the purpose of an audit report and the incentives the auditor has to perform a good audit. 
Last updated/reviewed: March 06, 2018

21 Reviews (89 ratings)Reviews

5
Member's Profile
Instructor was enthusiastic and very knowledgeable. Would recommend as a refresher course for Associates as well as a course for all new hires.
5
Anonymous Author
Top-notch instructor. The presentation was well organized and sufficiently detailed. Great review of financial statement structure and content.
5
Anonymous Author
One of my first courses and an excellent one taught by Jim Stice. He did a good job explaining and capturing attention, even adding humor.
4
Member's Profile
A good course on the basics of accounting. The instructor does a good job of illustrating the components of the financial statements.
5
Anonymous Author
High level course to familiarize user with various financial statements. It's as effective as it can be in 2 hours!
4
Member's Profile
Great class. Presenter was upbeat and made everything easy to listen to and follow along with.
5
Member's Profile
Jim is a very straight forward and easy to understand instructor. Thank you for the review!!!
4
Anonymous Author
excellent review of the financial statements. I liked how the instructor presented the course.
5
Anonymous Author
Excellent Professor !! This is a fun way to learn ! A great learning experience.
5
Member's Profile
Perfect review with many real examples! Will take other courses from Mr. Stice.
5
Member's Profile
Great instructor and delivery. Enjoyed the material and all examples.
4
Member's Profile
I enjoyed the presenter. A little sense of humor on a dry subject.
5
Member's Profile
Clear and slow explanations help grasp concepts easily
5
Member's Profile
Great course! Very informative and helpful.
5
Anonymous Author
Clear and fast review of basic accounting.
5
Member's Profile
Good refresher course..
5
Member's Profile
The course itself
5
Anonymous Author
Very Informative
5
Anonymous Author
Great refresher
4
Member's Profile
Informative
5
Member's Profile
Good

Prerequisites

Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed 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
  8:29The Purpose of Accounting
Financial Statements
  11:53Who Uses Accounting Information?
  11:47Introduction to Financial Statements
  11:47Balance Sheet
  11:18Balance Sheet Vs. Income Statement
  8:44Income Statement
  8:35EPS, Retained Income, and The Accounting Equation
  12:17Statement of Cash Flows
  7:11What Else is There to Know?
CONCLUSION
  10:34The External Audit
Continuous Play
  1:42:36Financial Statements: An Overview
SUPPORTING MATERIALS
  PDFSlides: Financial Statements: An Overview
  PDFFinancial Statements: An Overview Glossary/Index
REVIEW and TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM