Ch 22: Basic Financial Statement Analysis

About This Chapter

Explore fun videos from home or on-the-go to get a comprehensive overview of basic financial statement analysis! This chapter offers mini quizzes, a practice exam and other resources that ensure you're prepared for an upcoming test or assignment covering this subject.

Basic Financial Statement Analysis - Chapter Summary

This chapter simplifies the process of studying basic financial statement analysis. Access video lessons anytime and from any tablet, smartphone or computer with an Internet connection to make your exploration of this subject area easy and convenient. Strengthen your knowledge of financial statements, financial ratio analysis and more. In no time, you will be ready to:

  • Describe common size and base year financial statements
  • Use information on an adjusted trial balance to prepare financial statements
  • Discuss the purpose and elements of financial statement analysis
  • Define financial ratio analysis, and identify three main categories of financial ratios
  • Explain issues associated with financial statement analysis

Studying basic financial statement analysis has never been easier thanks to this chapter's easy-to-navigate format. Review videos and take accompanying quizzes in any sequence that suits your study needs. Scroll below the videos to find full transcripts that allow you to print the lessons or take notes right on your computer. Also, don't forget to take advantage of clickable timelines that let you skip to key topics without having to watch the videos in full!

6 Lessons in Chapter 22: Basic Financial Statement Analysis
Test your knowledge with a 30-question chapter practice test
Preparing Financial Statements

1. Preparing Financial Statements

Financial statements are the most sought after reports in the financial industry. In this lesson, you will learn how to prepare them using information found on the adjusted trial balance.

Financial Statement Analysis: Definition, Purpose, Elements & Examples

2. Financial Statement Analysis: Definition, Purpose, Elements & Examples

In this lesson, we'll define financial statement analysis and discuss the main categories. You'll also learn how to calculate a financial ratio in each category and analyze the results.

Defining and Applying Financial Ratio Analysis

3. Defining and Applying Financial Ratio Analysis

In this lesson, we'll define financial ratios. You'll learn the three main categories of financial ratios, and we'll show an example of each. We'll also discuss an analysis of each example.

Profitability Ratio: Definition, Formula, Analysis & Example

4. Profitability Ratio: Definition, Formula, Analysis & Example

How do you know if a company is performing well? In this lesson, you'll learn about various profitability ratios, including what they mean, their formulas and examples illustrating them. A short quiz follows the lesson.

Book Value vs. Market Value

5. Book Value vs. Market Value

In this lesson, you will learn what book value means, what the market value means, an example of how each is used, and how it can be incorporated in every day life.

Issues with Financial Statement Analysis

6. Issues with Financial Statement Analysis

In this lesson, we'll define financial statement ratios. You'll also learn some of the issues in analyzing financial statement ratios, as well as suggestions on how to make sure you're comparing apples to apples.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support