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Analysis and Uses of Financial Statements (FSDP)

Customer Rating
Field of Study
Accounting
Level
Overview
Credits
10
Qualifies For
CPE



Price:  $99.99
Analysis and Uses of Financial Statements is designed for interested parties who must understand how to read, interpret, and analyze financial statements. This course describes in clear, concise, and understandable language the intricacies of financial statements, and their use by investors, creditors, analysts, and other interested parties. This course can enhance your chance for success in business and investing; by enabling you to profit from the knowledge, insights, and perceptions of professionals who use financial statement analysis tools and techniques on a day-to-day basis. Realistic examples and illustrations of financial statement analysis are widely used in this course to make the subject matter crystal clear. That is the major objective of this course. This course explains the objectives of financial statements in a meaningful manner. The accounting principles used in compiling financial statements and the qualitative characteristics of data appearing on financial statements are relevantly and reliably described. After a thorough overview of financial statements, major tools and techniques as explained, including: • Horizontal and vertical analysis • Common-size statements • Ratio analysis • Liquidity and activity ratios • Profitability ratios • Capital structure and solvency ratios • Market test ratios • Cash flow ratios The significance of interim financial statements and segment reporting is explored, as are analysis of annual reports and management discussion and analysis (MDA). The analytical techniques discussed in this course are well within the limits of today’s information technology. Once the concepts are understood, software can be used to eliminate much of the computational tedium involved.

Additional information

Credits

10

Format

Self-Study Download

Company Code

Self Study

Yellow Book Approved

0

CFP Approved

0

IRS Approved

0

CTEC Approved

0

Field of Study Credits

Accounting (Technical) (10)

Field of Study Department

Accounting (Technical)

Course Version

2019-01

CPE Approved

1

Pre-requistes:

Basic math

Knowledge Level:

Overview

Major Topics:

  • Objectives of Financial Statement Analysis and Financial Reporting
  • Accounting Assumptions, Principles, Procedures and Policies
  • Understanding Financial Statements
  • An Overview of Financial Statement Analysis
  • Analysis of Liquidity and Activity
  • Analysis of Solvency and Capital Structure
  • Profitability Analysis
  • Market Strength and Overall Evaluation
  • Analysis of Cash Flows
  • Interim Statements and Segment Analysis

Learning Objectives:

  • State the objectives of financial reporting.
  • Recognize the qualitative characteristics of accounting information.
  • Recognize the basic assumptions of accounting.
  • Identify the basic principles of accounting.
  • Recognize the basic financial statements: the balance sheet, income statement, and statement of cash flows.
  • Identify the key balance sheet items portraying a company’s financial position.
  • Recognize the most important items on the statement of cash flows.
  • Identify the annual report components, including the financial statements, footnotes, review of operations, auditor’s report, and supplementary schedules
  • Assess a company’s cash inflows and cash outflows.
  • Recognize the important aspects of financial statement analysis.
  • Compare horizontal analysis and vertical analysis.
  • Identify the basic components of ratio analysis.
  • Identify the limitations of ratio analysis.
  • Recognize different liquidity ratios and how they can be used to compare companies.
  • Compute and interpret liquidity ratios used to analyze a company’s ability to pay debt.
  • Compute and interpret activity ratios.
  • Recognize how inventory and receivable factors will affect business analysis and comparisons.
  • Identify different structure ratios used to analyze the capital structure of a company.
  • Recognize operating leverage and financial leverage.
  • Recognize how financing, debt and interest affect company analysis and performance.
  • Recognize and apply key ratios related to profitability.
  • Identify how to compute return on investment (ROI), and how to enhance ROI.
  • Recognize how return on assets can be used to assess management performance.
  • Recognize a wide range of market test ratios used to measure market strength of a company.
  • Recognize how market test ratios evaluate a company’s financial performance.
  • Recognize the key items on the statement of cash flows to analyze company performance.
  • Identify and apply the major ratios used to evaluate the cash flow of a company.
  • Recognize the accounting associated with interim reporting.
  • Identify the disclosure requirements for major segments of a business.

Designed For:

Those interested in understanding how to read, interpret, and analyze financial statements
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