In this course we discuss each of the main financial statements, the income statement (P&L), the balance sheet, and the cash flow statement, describing what each one does, how they are utilized by companies in measuring financial performance, and how they relate to one another.

We then follow with a basic set of financial statements for a simple company, reviewing what we laid out up front about what the statements accomplish and how they interact. We finish by reviewing a set of financial statements from a publicly traded company to show that no matter how big the company, the fundamentals are the same.

This online self study program in the field of accounting serves as an overview for accounting and finance professionals who need to sharpen their fundamental understanding of the core financial statements and how they work together.

Course Series

This course is included in the following series:

11 CoursesBack to the Basics: Accounting Fundamentals

  1. Accounting Review: The Basics of Debits and Credits
  2. Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
  3. Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  4. The Accounting Equation and Financial Statements
  5. Bank Reconciliations, Cash, and Internal Controls
  6. Accounts Receivable Training: Bad Debts
  7. Equipment and Depreciation
  8. Inventory Costing
  9. Purchase and Sale of Inventory
  10. The Adjusting Process
  11. The Closing Process

5 CoursesFinance for Non-Finance Professionals

  • Accounting 101: How To Do Basic Accounting In One Hour
  • Accounting Review: The Basics of Debits and Credits
  • Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  • Learn Finance Principles in 1 Hour
  • Enterprise Risk Management 101
Learning Objectives
  • Demonstrate what each financial statement does and how they are utilized by companies both large and small.
  • Measure your company’s performance through the use of financial statements.
  • Sharpen your understanding of how financial statements work together.
Last updated/reviewed: March 20, 2024
54 Reviews (206 ratings)

Reviews

3
Member's Profile
Consistent and relevant. Dated materials and lack of review over several years means that current events and changes to FS accounting, including 2017 tax law changes, FASB changes and COSO 2013 changes will not be addressed in examples - may not be relevant to a basics course, but the tiny handwriting and inconsistent slide information makes some difference in engaging viewers.

5
Anonymous Author
Erik gives a nice overview of the four financial statements. This course would be very helpful for someone not necessarily working in an accounting area, but is also fine review for a seasoned accountant, as the basics can get lost over time.

2
Anonymous Author
Questions were not specific, nor was some of the info touched upon within the presentation. Did not mention in what order were the statements finalized, nor did the first question about expenses have good rationale for the answers.

4
Anonymous Author
Information presented logically, well laid out with good examples and clarification. A good reminded overview for the seasoned accountant. A great introduction for person new to the accounting field.

4
Anonymous Author
Good review of the financial statements and how they are connected to each other. Would have liked to seen more slides for each statement discussion. The Costco slides were difficult to read.

5
Anonymous Author
The course is well put together and the instructor does a good job explaining material. I believe this is a must course for people who want to learn some accounting and covers the basics.

5
Member's Profile
Great instructor, kept me engaged. This is a very introductory course to the financial statements. Great for those trying to expand their knowledge and learn terms.

5
Anonymous Author
Great review of the financial statements. I recommend this for anyone looking to refresh their knowledge and understanding of the financial statements.

5
Anonymous Author
Course materials, examples and verbiage were extremely beneficial in laying out the order of preparation along with purpose of each financial statement.

5
Anonymous Author
The topics covered were basic and easy to learn; the instructor did a good job at explaining the accounting concepts of the financial statements.

3
Member's Profile
Good and Easy to understand. Universal information. A few years outdated and video hard to read, but if you follow the slides it works.

5
Anonymous Author
Excellent overview of the financial statements. I loved the real world example comparing it to what we have learned. Excellent course.

5
Member's Profile
A good review of the financial statements. I appreciated the review of the statement of retained earnings and cash flow statements.

5
Member's Profile
Great course about financial statements to meet course requirements, straight to the point and informative. Good instructor tempo.

5
Anonymous Author
This is a great course to help non-accountants about the basic financial statements and the difference between them.

5
Member's Profile
This was very informative. My only complaint would be that the slides were very blurry and could barely read them.

4
Anonymous Author
You'll be able to grasp the basics of accounting. This is a great starter for those new to the accounting world

4
Good overall course. Not enough slides highlighting the information reviewed in the first section (Basics).

5
Anonymous Author
Very good overview, sure it invites to dig deeper into each statement. Refreshing after a break on studies.

4
Anonymous Author
Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow was a great course

5
Member's Profile
Great course for CPE credit. Basic but great for anyone needing a refresher of the financial statements.

5
Anonymous Author
This course was a good refresher. The instructor was very effective in presenting the course materials.

4
Anonymous Author
Good course for very high level information. Probably too basic for a CPA to learn much new.

4
Member's Profile
I find these reviews always helpful as I'm not always working with financial statements

5
Anonymous Author
Great simple overview of the financial statements. Very informative and easy to follow.

5
Member's Profile
Course met all stated expectations and would take a course by this instructor again.

5
Anonymous Author
Back to basics review, good course on the financial statements and worth the time.

4
Anonymous Author
i think the course is a great introduction to financial reporting. very heplfu.

5
Member's Profile
Good review. We overlook the basic accounting sometimes and this was helpful.

5
Anonymous Author
It is very well organized and has clear explanations with great examples.

3
Anonymous Author
I liked the subject. I think slides might have been a bit more detailed.

5
Anonymous Author
Good basic overview of accounting, like the instructor and the tempo.

5
Anonymous Author
A great accounting basic refresher. Thanks for a great course.

5
Anonymous Author
Good to know the order of preparing the financial statements.

5
Anonymous Author
I wish the examples on the slides were a little more clear.

5
Anonymous Author
Excellent comprehensive review of the financial statements.

4
Member's Profile
i love to see how other accountants describe what we do....

5
Anonymous Author
always return to basic is gladly happy to study. Thank you.

5
Anonymous Author
The additional materials provided were very helpful.

5
Anonymous Author
Great course for a beginner level accountant.

5
Member's Profile
Great information and a wealth of knowledge.

4
Anonymous Author
Case study with Costco was a good tie in.

3
Anonymous Author
I felt that is was very well done.

5
Member's Profile
Very basic and easy to understand

3
Member's Profile
most screen shots were blurry

Member's Profile
Its a good refresher course

Anonymous Author
Good introductory course!

5
Anonymous Author
Really great presenter

5
Member's Profile
Good elementary review

5
Anonymous Author
I enjoy the instructor

5
Member's Profile
Fun review. Thanks!

4
Anonymous Author
good review course

5
Anonymous Author
a good refresher.

4
Member's Profile
Very helpful.

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 Questions and Answers(3 Questions)
Member's Profile

Erik -

Your answer for the Quiz question about Assets is wrong. Assets are usually items that can generate cash flow in the future. Office supplies (not-for-resale) would not be an asset, but they are owned by the company.

I would re-think the question and/or answers.

Member's Profile

Wayne-
Thanks for your feedback.

Assets have a broader definition than you are giving them - there are many assets that don't provide cash to a company in the future. In basic terms (as I describe in the course) assets are things a company owns. In more technical terms, I pull the following guidance from the FASB Statement of Concepts #6 (here's the link if you need help with insomnia: http://www.fasb.org/cs/BlobServer?blobkey=id&blobwhere=1175822102897&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobs)

The two paragraphs I provide here are a definition of assets and then further clarification. I hope this helps.

-Erik

Paragraph 25: Assets are probably future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

Paragraph 177: Most assets presently included in financial statements qualify as assets under the definition in paragraph 25 because they have future economic benefits. Cash, accounts and notes receivable, interest and dividends receivable, investments in securities of other entities, and
similar items so obviously qualify as assets that they need no further comment except to note that uncollectible receivables do not qualify as assets. Inventories of raw materials, supplies, partially completed product, finished goods, and merchandise likewise obviously fit the definition as do productive resources, such as property, plant, equipment, tools, furnishings, leasehold improvements, natural resource deposits, and patents. They are mentioned separately from cash, receivables, and investments only because they have commonly been described in accounting literature as "deferred costs" or occasionally as "deferred charges" to revenues.

Member's Profile
Instructor for this course
Course Syllabus
Introduction and Overview
  Introduction to Financial Statements3:28
Financial Statement Basics
  The Income Statement (aka the "P&L")4:29
  Balance Sheet and Statement of Retained Earnings9:05
  Cash Flow Statement3:08
Building Basic Financial Statements
  Identifying Accounts and Preparing a Basic Income Statement (P&L)9:36
  Preparing Basic Balance Sheet, Retained Earnings and Cash Flow Statements6:44
Case Study: A Real-World Example
  Case Study View of Real-World Public Company Financial Statements12:22
Continuous Play
  Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow48:51
SUPPORTING MATERIALS
  Work Sheet: Financial Statements PDF
  Slides: Overview of Financial StatementsPDF
  Financial Statements Glossary/IndexPDF
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam