Introduction to Financial Statements
Learn the basic terms and concepts that form the foundation of financial reporting and analysis.
Our Curriculum
Courses
Gain the knowledge and tools needed to effectively analyze and interpret financial statements.
12 courses · ~10 hours
Revenues, Expenses, and Net Profit
Discover the first major financial statement—the income statement — and its core equation: revenues - expenses = net profit.
Operating Profit and Gross Profit
Expand your knowledge of the income statement with two important subtotals: operating profit and gross profit.
Contribution Margin and Break-Even
Learn to differentiate between fixed and variable costs and how to calculate when a company will hit its break-even point.
Accrual Basis
Learn about the accrual basis and why it does a better job of reflecting economic reality than the cash basis.
Current Assets
Learn about the second major financial statement, the balance sheet, as well as what defines an asset and how they're accounted for.
Debits and Credits
Learn about the fundamental building blocks of a company's financial accounting system: debits and credits.
Noncurrent Assets
Learn the key concepts and classifications of noncurrent assets, including their role in financial reporting and long-term business value.
Leverage and Liquidity
Learn two important concepts that will allow you to assess a company's financial health: leverage and liquidity.
Liabilities and Equity
Learn about the second half of the balance sheet—liabilities and equity—and how these accounts are used to finance a company's assets.
Performance Measurement
Add more ratios to your toolkit that will allow you to measure performance and drive results.
Statement of Cash Flows
Learn about the third major financial statement, the statement of cash flows, and how it connects the income statement to the balance sheet.
