Understanding Financial Statements

no certificate
with CEU Certificate*
-
12Lessons
-
13Exams &
Assignments -
262Students
have taken this course -
7Hours
average time -
0.7CEUs
Course Description
Accounting is the language of business. However, the real language of business lies within accounting--inside the financial statements and financial reporting system. The purpose of this course is to provide a business financial communication tool. Financial statements such as the balance sheet, income statement, statement of cash flow, and the statement of stockholders' equity are all used as communication tools to answer questions about the state of a company's financial well-being; they provide insight into the financial position and the financial health of a company over a defined period of time.
This course walks the learner from the beginning stages of accounting and GAAP principles, through the balance sheet, income statement, statement of cash flow, and statement of stockholders' equity. Next, the course discusses applied financial statement analysis involving the movement of cash flow through a company and its effects, along with financial ratio analysis which greatly helps stock investors make investment decisions. Finally, the course covers accounting fraud, the mechanisms of fraud, how to spot fraud, and even the methods that are used by unscrupulous accountants and business managers to commit fraud or "cook the books".
This course provides learners with a solid understanding of financial statements. This financial knowledge is used by accountants, managers, and investors to make smart and strategic business decisions.
- Completely Online
- Self-Paced
- 6 Months to Complete
- 24/7 Availability
- Start Anytime
- PC & Mac Compatible
- Android & iOS Friendly
- Accredited CEUs

Course Lessons
Lesson 1: Understanding GAAP and FASB
Review 3 Articles: General Accepted Accounting Principles or GAAP: What does it mean?; The Four Basic Financial Statements: An Overview; Elements of the Income Statement
Take Survey: Reasons for Taking this Course
Complete: Exam 1
Lesson 2: The Financial Statements Included in an Organization's Financial Reporting Structure
Review 2 Articles: The Four Basic Financial Statements: An Overview; Complete Guide To Corporate Finance
Complete: Exam 2
Lesson 3: How to Itemize and Interpret the Information Provided in the Income Statement
Review 2 Articles: Understanding The Income Statement; Income Statement Format Example
Complete: Exam 3
Lesson 4: The Balance Sheet
Review 2 Articles: Breaking Down The Balance Sheet; What balance sheet formats are available?
Complete: Exam 4
Lesson 5: The Statement of Stockholders' Equity
Review Article: Format and Example of Statement of Stockholders Equity
Complete: Exam 5
Lesson 6: The Statement of Cash Flows
Review 3 Articles: Cash Flow Statement- Explanation; What is cash from operating activities?; What are cash flows from investing activities?
Complete: Exam 6
Lesson 7: The Impact of Working Capital and Business Activities on Cash Flow
Review 2 Articles: How do changes in working capital affect a company's cash flow?; Understanding Cash Flow Analysis
Complete: Exam 7
Lesson 8: Financial Ratio Analysis and Its Objectives and Limitations
Review 2 Articles: Ratio Analysis: Using Financial Ratios; Four Basic Types of Financial Ratios Used to Measure a Company's Performance
Complete: Exam 8
Lesson 9: The Different Types and Categories of Financial Ratios
Review 2 Articles: Categories of Financial Ratios; Financial Ratio Tutorial
Complete: Exam 9
Lesson 10: Performing Calculations Using Financial Ratios
Review 3 Articles: Financial Ratios Based on the Income Statement; Trend Analysis; 16 Financial Ratios for Analyzing a Company's Strengths and Weaknesses
Complete: Exam 10
Lesson 11: Financial Statement Fraud, Reasoning, and Consequences
Review 3 Articles: Detecting Financial Statement Fraud; Examples of Corporate Fraud Investigations; Warning Signs of Fraud on an Income Statement
Complete: Exam 11
Lesson 12: What Does Cooking the Books Mean?
Take Poll: Course Completion Poll: Your Thoughts
Take Survey: Course Comments
Take Survey: Program Evaluation Follow-up Survey (End of Course)
Complete: Exam 12
Complete: Final Exam
Learning Outcomes
- Define understanding GAAP and FASB.
- Summarize the financial statements included in an organization's financial reporting structure.
- Describe how to itemize and interpret the information provided in the income statement.
- Recognize The Balance Sheet.
- Identify The Statement of Stockholders' Equity
- Summarize The Statement of Cash Flows.
- Describe the impact of working capital and business activities on cash flow.
- Describe financial ratio analysis and its objectives and limitations.
- Describe the different types and categories of financial ratios.
- Summarize performing calculations using financial ratios.
- Summarize financial statement fraud, reasoning, and consequences.
- Define what cooking the books means, and
- Demonstrate mastery of lesson content at levels of 70% or higher.
Additional Course Information

- Document Your Lifelong Learning Achievements
- Earn an Official Certificate Documenting Course Hours and CEUs
- Verify Your Certificate with a Unique Serial Number Online
- View and Share Your Certificate Online or Download/Print as PDF
- Display Your Certificate on Your Resume and Promote Your Achievements Using Social Media

Choose Your Subscription Plan
No Certificate / No CEUs
This course only
Includes certificate | X |
Includes CEUs | X |
Self-paced |
![]() |
Instructor support |
![]() |
Time to complete | 6 months |
No. of courses | 1 course |
Certificate & CEUs
This course only
Includes certificate |
![]() |
Includes CEUs |
![]() |
Self-paced |
![]() |
Instructor support |
![]() |
Time to complete | 6 months |
No. of courses | 1 course |
Certificates & CEUs
Includes all 500+ courses
Includes certificate |
![]() |
Includes CEUs |
![]() |
Self-paced |
![]() |
Instructor support |
![]() |
Time to complete | 12 Months |
No. of courses | 500+ |
Certificates & CEUs
Includes all 500+ courses
Includes certificate |
![]() |
Includes CEUs |
![]() |
Self-paced |
![]() |
Instructor support |
![]() |
Time to complete | 24 Months |
No. of courses | 500+ |