Online Class: Understanding Financial Statements

This course will provide 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.
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  • 12
    Lessons
  • 14
    Exams &
    Assignments
  • 480
    Students
    have taken this course
  • 7
    Hours
    average time
  • 0.7
    CEUs
 
 

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.

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Course Motivation


  • Completely Online
  • Self-Paced
  • 6 Months to Complete
  • 24/7 Availability
  • Start Anytime
  • PC & Mac Compatible
  • Android & iOS Friendly
  • Accredited CEUs
Universal Class is an IACET Accredited Provider
 

Course Lessons

Average Lesson Rating:
4.6 / 5 Stars (Average Rating)
"Extraordinarily Helpful"
(267 votes)

Lesson 1: Understanding GAAP and FASB

The best way to understand accounting is to think of it as a language. Accounting is the language of business and it allows people to communicate with the operations and transactions of a business, or even an entire industry. Additional lesson topics: How to Read a Financial Report: Wringing Vital Signs Out of the Numbers; General Accepted Accounting Principles or GAAP: What does it mean?; Understanding Financial Statements; The Four Basic Financial Statements: An Overview 12 Total Points
  • Lesson discussions: Reasons for Taking this Course
  • Complete Assignment: Motives for Taking this Course
  • Assessment: Exam 1

Lesson 2: The Financial Statements Included in an Organization's Financial Reporting Structure

In order to keep an accurate and efficient record of ongoing financial activities, every enterprise will prepare standardized documentation known as financial statements Additional lesson topics: The Four Basic Financial Statements: An Overview; Complete Guide to Corporate Finance 10 Total Points
  • Assessment: Exam 2

Lesson 3: How to Itemize and Interpret the Information Provided in the Income Statement

An income statement, also commonly called a profit and loss statement, reflects a businesss expenses and revenues over a specified period of time. Additional lesson topics: Mastering the Income Statement Even If You Hate Accounting ; Income Statement Format Example; Understanding The Income Statement 9 Total Points
  • Assessment: Exam 3

Lesson 4: The Balance Sheet

The simplest way to understand a balance sheet is to think of it as a snapshot of a company's financial position at a particular point in time. Additional lesson topics: Breaking Down The Balance Sheet; What balance sheet formats are available? 10 Total Points
  • Assessment: Exam 4

Lesson 5: The Statement of Stockholders' Equity

The statement of stockholders' equity can help investors, managers, and accountants get a clear picture of a business's ownership profile. Additional lesson topics: Financial Statements; Format and Example of Statement of Stockholders Equity 10 Total Points
  • Assessment: Exam 5

Lesson 6: The Statement of Cash Flows

The main goal of the statement of cash flows is to provide information regarding how a business generates cash, the cash receipts, and cash payments of the business during a given time. Additional lesson topics: What are cash flows from investing activities?; What is cash from operating activities?; Cash Flow Statement- Explanation 10 Total Points
  • Assessment: Exam 6

Lesson 7: The Impact of Working Capital and Business Activities on Cash Flow

Cash is generally regarded as the most liquid of all assets that a business can own, so many managers and business owners have a particular interest in exactly how much cash is available to their business at any given time. Additional lesson topics: How do changes in working capital affect a company's cash flow?; Understanding Cash Flow Analysis 10 Total Points
  • Assessment: Exam 7

Lesson 8: Financial Ratio Analysis and Its Objectives and Limitations

The term financial analysis refers to collecting the financial data for a business, and then making comparisons among different variables in either the same financial statement, across multiple financial statements, or across the business, as a whole. Additional lesson topics: Ratio Analysis: Using Financial Ratios; Four Basic Types of Financial Ratios Used to Measure a Company's Performance 10 Total Points
  • Assessment: Exam 8

Lesson 9: The Different Types and Categories of Financial Ratios

Financial ratios are a type of quantitative analysis for financial statements. Additional lesson topics: Financial Ratio Tutorial 10 Total Points
  • Assessment: Exam 9

Lesson 10: Performing Calculations Using Financial Ratios

Financial ratios are used to measure a company's productivity in terms of how well it is using assets, profits generated from each unit of sale, rate of inventory turnover, etc. The ratios are indicators for current financial health, as well as a company's potential. Additional lesson topics: 16 Financial Ratios for Analyzing a Company's Strengths and Weaknesses; Trend Analysis; Financial Ratios Based on the Income Statement 10 Total Points
  • Assessment: Exam 10

Lesson 11: Financial Statement Fraud, Reasoning, and Consequences

As technology increases and the world becomes more reliant on financial data for global interaction, there is a greater risk for financial fraud to occur. Additional lesson topics: Detecting Financial Statement Fraud 10 Total Points
  • Assessment: Exam 11

Lesson 12: What Does Cooking the Books Mean?

This lesson is designed to show you methods of cooking the books -- not to facilitate you in preparing fraudulent financial reports, but rather to help you spot signs of fraud in a business and its financial reports. 68 Total Points
  • Lesson discussions: Course Completion Poll: Your Thoughts; Course Comments; Program Evaluation Follow-up Survey (End of Course)
  • Assessment: Exam 12
  • Assessment: Final Exam
179
Total Course Points
 

Learning Outcomes

By successfully completing this course, students will be able to:
  • 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.
  • Demonstrate mastery of lesson content at levels of 70% or higher.
 

Additional Course Information

Online CEU Certificate
  • 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
Document Your CEUs on Your Resume
 
Course Title: Understanding Financial Statements
Course Number: 8900343
Lessons Rating: 4.6 / 5 Stars (267 votes)
Languages: English - United States, Canada and other English speaking countries
Availability: This course is online and available in all 50 states including: California, Florida, Georgia, Illinois, New York, Pennsylvania, Ohio, and Texas.
Last Updated: January 2022
Course Type: Self-Paced, Online Class
CEU Value: 0.7 IACET CEUs (Continuing Education Units)
CE Accreditation: Universal Class, Inc. has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).
Grading Policy: Earn a final grade of 70% or higher to receive an online/downloadable CEU Certification documenting CEUs earned.
Assessment Method: Lesson assignments and review exams
Syllabus: View Syllabus
Course Fee: $95.00 U.S. dollars

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Student Testimonials

  • "The course was very informative and helpful as a personal investor. I appreciated the lessons' content and format. Equally, the written content is easy to follow and reader friendly. Also, quick feedback on exams are insightful." -- Larry J.
  • "It was very helpful - particularly the SOX discussion and the financial ratios." -- Mike B.
  • "It was very helpful for someone of my limited knowledge on the subject." -- Christopher G.

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