Enjoying the preview?
This is the free first lesson. Get full access — request a demo or sign in.
Understanding Finance
Learn about the paperwork your finance department uses for financial reportingPreview the first lesson free — get full access to all 6 lessons.
Intermediate Provider : Ehab Saad 6 Lessons · 17m in Arabic, German, English, Spanish, French, Portuguese, Chinese
Course Description
In this course, you will learn about the specialized paperwork your finance department uses for financial reporting: the balance sheet, the income statement, and the cash flow statement. These statements are prepared according to industry standards and should be easy to understand, relevant, verifiable, and prepared in a timely manner. You will also learn about the ethical preparation of these documents.
The balance sheet provides decision-makers with information about what the company owns, what it owes, and its net worth. The income statement lists the company’s revenues, expenses, and net profit or loss over a specific period. The cash flow statement details the company’s cash sources and any cash used for activities like operating, investing, and financing. Understanding each statement will help you more easily communicate with your finance department and make intelligent decisions for your own department. With this information, you will be able to better understand how your department fits into the company’s larger picture, helping you make better decisions that consider factors outside of your department.
What You'll Learn
- Identify the three core financial statements: the balance sheet, the income statement, and the cash flow statement
- Understand what the balance sheet reveals about what a company owns, what it owes, and its net worth
- Analyze the income statement's revenues, expenses, and net profit or loss over a specific period
- Interpret the cash flow statement's sources of cash and cash used for operating, investing, and financing activities
- Apply financial statement standards so reports are understandable, relevant, verifiable, and timely
- Recognize the ethical preparation of financial reporting documents
Key Takeaways
- Financial statements are prepared according to industry standards and should be easy to understand, relevant, verifiable, and prepared in a timely manner.
- The balance sheet provides decision-makers with information about what the company owns, what it owes, and its net worth.
- The income statement lists the company's revenues, expenses, and net profit or loss over a specific period.
- The cash flow statement details the company's cash sources and any cash used for operating, investing, and financing activities.
- Understanding each statement helps you communicate with your finance department and make better decisions that consider factors outside your own department.
Frequently Asked Questions
Who is this course for?
It is designed for people outside the finance department who want to understand financial statements so they can communicate with their finance department and make intelligent decisions for their own department.
What financial statements does the course cover?
It covers the balance sheet, the income statement, and the cash flow statement.
What will I be able to do after taking this course?
You will be able to understand, analyze, and apply the standards behind financial statements, and better understand how your department fits into the company's larger picture.
Does the course address ethics?
Yes. You will learn about the ethical preparation of these financial reporting documents.
What lessons are included?
The course includes Introduction, Overview of Financial Statements, The Balance Sheet, The Income Statement, Cash Flow Statement, and a Test Your Knowledge section.
