Financial Statements Explained, Learn how to read Income Statements, Balance Sheets, and Cash Flow Statements.
By the end of this course, students should be able to:
· Define bookkeeping, accounting, and finance, and distinguish between their function in a business.
· Define financial accounting and management accounting.
· Read and interpret the three main financial statements: income statement, balance sheet, and cash flow statement.
· Learn the importance and use of each financial statement.
· Define and understand different accounts in each financial statement.
· Distinguish between revenue and expense.
· Calculate gross profit, operating profit, and net profit.
· Learn the structure and layout of an income statement.
· Learn how to prepare a simple income statement for a small business.
· Define assets, liabilities, and equity.
· Differentiate between current and non-current assets.
· Differentiate between current and non-current liabilities.
· Understand equity and retained earnings.
· Learn the structure and layout of a balance sheet.
· Learn how to prepare a simple balance sheet for a small business.
· Appreciate the importance of cash and the need for preparing a cash flow statement.
· Distinguish between cash inflow and cash outflow for a business.
· Understand the three main sections in a cash flow statement: operating, investing, and financing activities.
· Learn the structure and layout of a cash flow statement.
· Learn how to prepare a simple cash flow statement for a small business.