Comprehending Financials: A Guide to Financial Statements

Non-financial professionals who wish to gain an understanding or refresh their knowledge of finance and accounting


Expected Duration
29 minutes

The focus of any business is to make a profit, generate enough cash to operate effectively, and be financially viable. Financial statements are used to track a business’s financial information. There are three basic financial statements used for this purpose: the Income Statement, the Cash Flow Statement, and the Balance Sheet. In this course, you will learn about each of the three financial statements, their reporting requirements, and how information is arranged within them. You will also examine a few examples of financial statements and explore how each financial statement relates to the others.


Demystifying Financial Statements

  • recognize the four types of financial data included in an Income Statement and the purpose of each
  • recognize how to calculate gross profit and income using the Income Statement
  • identify the strategies for managing cash flow
  • recognize in which section of a Cash Flow Statement each cash flow item belongs
  • recognize how to calculate cash flow values using the Cash Flow Statement
  • recognize how financial transactions affect the financial state of a company in a given scenario
  • recognize how to compile a Balance Sheet
  • recognize the impact a transaction has on the Income Statement, Cash Flow Statement, and Balance Sheet





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