Course

Introduction to Financial Statements

Learn the basic terms and concepts that form the foundation of financial reporting and analysis.

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Purpose of Financial Statements

Users of Financial Statements

Introduction to GAAP

Comparability

Consistency

Limitations of GAAP

Qualities of Well-Prepared Financial Statements

Internal Controls

Conservatism

Course Review

Course Quiz

Course Description

In the first course of our "Accounting 101” series, “Introduction to Financial Statements,” you will learn the purpose and significance of financial statements and establish a proper foundation for your accounting and finance journey. This course will introduce you to the various stakeholders who rely on financial statements and the different types of decisions those stakeholders make. Finally, it will introduce you to key accounting concepts such as conservatism, materiality, comparability, and consistency, as well as the key attributes essential for compiling high-quality financial statements. By the end of this course, you will be prepared to begin tackling the three main financial statements, starting with the income statement.

By the end of this course, you will able to answer questions such as:

• What purpose do financial statements serve and why are they necessary?
• Why is accounting the “language of business”?
• What are the key principles underlying the preparation of financial statements?

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GAAP
IFRS
Materiality
Comparability
Consistency
Accuracy
Relevance
Timeliness
Completeness
Conservatism
Accounting Principles
Financial Statements
Ethics

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