About This Chapter
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!
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.
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.
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.
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.
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.
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.
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.
Other chapters within the Certified Management Accountant (CMA): Study Guide & Test Prep course
- Financial Statements Overview
- Financial Valuation, Recognition & Measurement
- Financial Strategic Planning
- Budgeting Concepts for Accountants
- Forecasting Techniques in Business
- Budgeting Methodologies in Accounting
- Annual Profit Planning
- Financial Projections
- Cost & Variance Measures in Performance Management
- Responsibility Centers & Reporting Segments
- Performance Measurement in Accounting
- Cost Measurement & Systems
- Overhead Costs
- Understanding Supply Chain Management
- Business Process Improvement
- Governance, Risk & Compliance in Accounting
- Accounting Systems Controls & Security Measures
- Accounting & Enterprise Information Systems
- Data Governance
- Technology-Enabled Finance Transformation
- Data Analytics
- Profitability Analysis
- Financial Statement Special Issues
- Basics of Corporate Finance
- Capital Management Overview
- Corporate Restructuring
- International Finance Practices
- Business Decision Analysis
- Risk Management for Business
- Investment Decisions
- Accountant Professional Ethics
- Certified Management Accountant (CMA) Flashcards