Financial Statements Explained

What you'll learn
Learn to understand and read the three main financial statements
Differentiate between gross, operating, and net profits
Define assets and liabilities and classify them into fixed and current
Understand the three sections of a cash flow statement: Operating, Investing, and Financing
Requirements
None
Description
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.

Who this course is for:
Students, SME owners, Non-finance professionals

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