COURSE OVERVIEW:

Some professors like to say that accounting is “the language of business.” At its most fundamental level, accounting is the system of tracking the income, expenses, assets, and debts of a business.

When looked at with a trained eye, a business’s accounting records truly tell the story of the business. Using nothing but a business’s “books” (accounting records), you can learn practically anything about a business. You can learn simple things such as whether it’s growing or declining, healthy or in trouble. Or, if you look closely, you can see things such as potential threats to the business’s health that might not be apparent even to people within the company.

Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. The objective of financial statements is to provide information on how the business is operating financially and why. Ensuring financial statements are produced regularly will provide information for continual improvement of business operations.

Financial Ratios are key indicators of the financial performance of the company and are usually derived from its three statements including income statement, balance sheet, and cash flows. These financial ratios help in analysing the company's profitability, liquidity, assumed risks as well as financial stability.

This course explains the most important financial statements and financial ratios used in accounting. How to read and understand each one, as well as what lessons you can draw from each.

LEARNING OUTCOMES:

By the end of this course, you will be able to understand:

• The Accounting Equation
• How your Asset is someone else’s Liability?
• The Balance Sheet
• What are Assets?
• What are Liabilities?
• What is meant by Owners’ Equity?
• Multiple-Period Balance Sheets
• The Income Statement
• The Gross Profit
• The Cost of Goods Sold
• The Operating Income vs. Net Income
• The Statement of Retained Earnings
• How the statement of retained earnings functions as a bridge between Financial Statements?
• What is meant by Dividends?
• What Retained Earnings are?
• The Cash Flow Statement
• Cash Flow Statement vs. Income Statement
• The Categories of Cash Flow
• What is meant by Financial Ratios?
• What Liquidity Ratios are?
• What Profitability Ratios are?
• What Financial Leverage Ratios are?
• The Pros and Cons of Financial Leverage
• What Asset Turnover Ratios are?

COURSE DURATION:

The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.

COURSE REQUIREMENTS:

You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.

COURSE DELIVERY:

Purchase and download course content.

ASSESSMENT:

A simple 10-question true or false quiz with Unlimited Submission Attempts.

CERTIFICATION:

Upon course completion, you will receive a customised digital “Certificate of Completion”.