Instructor for this course

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

7 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
  • Module Three in Financial Intelligence: The 4 Financial Ratio Classifications – Back to Basics Series
  • Module Four in Financial Intelligence: Cash vs. Profit and Working Capital Strategies – Back to Basics Series

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: October 4, 2018

20 Reviews (87 ratings)Reviews

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.
Good overall course. Not enough slides highlighting the information reviewed in the first section (Basics).
Anonymous Author
Good course for very high level information. Probably too basic for a CPA to learn much new.
Member's Profile
I find these reviews always helpful as I'm not always working with financial statements
Anonymous Author
I liked the subject. I think slides might have been a bit more detailed.
Anonymous Author
Great course for a beginner level accountant.
Member's Profile
Great information and a wealth of knowledge.
Anonymous Author
Case study with Costco was a good tie in.
Anonymous Author
I felt that is was very well done.
Member's Profile
Very basic and easy to understand
Member's Profile
most screen shots were blurry
Member's Profile
Its a good refresher course
Anonymous Author
Good introductory course!
Anonymous Author
Really great presenter
Member's Profile
Good elementary review
Anonymous Author
I enjoy the instructor
Member's Profile
Fun review. Thanks!
Anonymous Author
good review course
Anonymous Author
a good refresher.
Member's Profile
Very helpful.


Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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 .

2 QuestionsCourse Questions and Answers

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

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:

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


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.

Course Syllabus
Introduction and Overview
Financial Statement Basics
  4:29The Income Statement (aka the "P&L")
  9:05Balance Sheet and Statement of Retained Earnings
  3:08Cash Flow Statement
Building Basic Financial Statements
  9:36Identifying Accounts and Preparing a Basic Income Statement (P&L)
  6:44Preparing Basic Balance Sheet, Retained Earnings and Cash Flow Statements
Case Study: A Real-World Example
  14:22Case Study View of Real-World Public Company Financial Statements
Continuous Play
  48:51Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  PDFWork Sheet: Financial Statements
  PDFSlides: Overview of Financial Statements
  PDFFinancial Statements Glossary/Index