How to Read a Financial Statement

This course covers financial reports and their meaning. You will learn the fundamentals and importance of the income statement, balance sheet, and statement of cash flows, and how they can be used to manage a business. You will also be exposed to financial (ratio) analysis.

After completing this course, you'll be able to:

• Identify and describe the documents and financial statements included in an organization's financial report
• Itemize and interpret the information in the income statement, balance sheet, statement of changes in shareholders' equity, and statement of cash flows
• Correctly state the impact of specific business activities on cash flow
• Define financial (ratio) analysis and explain its objectives and limitations
• Identify the various types and categories of financial ratios
• Perform calculations using financial ratios

Target Audience: This course is designed for adult learners and/or non-financial managers.

Level/Prerequisites: Introductory/No Prerequisites

Estimated time to complete: 3-5 hours

Ask the Expert: This course has an "Ask the Expert" feature, which submits your questions directly to an expert in the field you are studying. Questions are answered as quickly as possible and usually within 24 hours.

Required Material: This course does not require any additional purchases of supplementary materials.

Successful Completion Requirement for IACET CEU: Learners must achieve an average test score of at least 70% to meet the minimum successful completion requirement and qualify to receive IACET CEU credit. Learners will have three attempts at all graded assessments.