About This Chapter
Who's It For?
Anyone who needs help learning or mastering financial statements material will benefit from the lessons in this chapter. There is no faster or easier way to learn financial statements. Among those who would benefit are:
- Students who have fallen behind in understanding the components and purpose of various financial statements
- Students who struggle with learning disabilities or learning differences, including autism and ADHD
- Students who prefer multiple ways of learning finance (visual or auditory)
- Students who have missed class time and need to catch up
- Students who need an efficient way to learn about financial statements
- Students who struggle to understand their teachers
- Students who attend schools without extra finance learning resources
How It Works:
- Find videos in our course that cover what you need to learn or review.
- Press play and watch the video lesson.
- Refer to the video transcripts to reinforce your learning.
- Test your understanding of each lesson with short quizzes.
- Verify you're ready by completing the financial statements chapter exam.
Why It Works:
- Study Efficiently: Skip what you know, review what you don't.
- Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
- Be Ready on Test Day: Use the financial statements chapter exam to be prepared.
- Get Extra Support: Ask our subject-matter experts any financial statements question. They're here to help!
- Study With Flexibility: Watch videos on any web-ready device.
Students Will Review:
This chapter helps students review the concepts in a financial statements unit of a standard corporate finance course. Topics covered include:
- Importance and purpose of financial statements
- Format of the balance sheet
- Income statement's components and importance
- Statement of cash flows
- Notes on financial statements
- Preparation methods for the statement of retained earnings
- External audits
1. What Are Financial Statements? - Definition, Purpose & Importance
Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.
2. The Balance Sheet: Purpose, Components & Format
There are four financial reports that make up a group known as the financial statements. We will take a walk with one of those reports - the balance sheet - and learn what it is, what items are included on it and what its role in the group is.
3. What Is an Income Statement? - Purpose, Components & Format
There are four financial reports that are created during the accounting cycle. These four reports make up what is commonly known as the financial statements. In this lesson, we will focus our attention on the income statement. We will learn what the income statement is, what its role in the financial statements is, and why it is important in accounting.
4. The Statement of Cash Flows: Purpose, Format & Examples
There are four financial reports that are required in financial statements. In this lesson, you will learn about the fourth and final report - the statement of cash flows. You'll learn what the makeup of the statement is, its purpose, and why it is important to users of the financial statements.
5. The Purpose of Notes on Financial Statements
Financial statements are very important in accounting and finance. In this lesson, you will learn about notes to the financial statements, what information they may give, and why they are important to financial statement users.
6. Preparing the Basic Income Statement and Statement of Retained Earnings
Preparing financial statements can be tricky. In this lesson, we are going to talk about how to prepare the first two basic financial statements: the income statement and the statement of retained earnings.
7. How to Prepare the Basic Balance Sheet and Statement of Cash Flows
There are four reports that make up the financial statements. In this lesson, we will talk about how to create the balance sheet and the statement of cash flows. You will learn how to format the reports, as well as what information is reported on them.
8. External Audits of Financial Statements
Financial statements are one of the most heavily relied upon group of reports in the business world, and they must be accurate and reliable. In this lesson, you'll learn about financial statement audits, who performs them, and why they are important.
9. International Financial Reporting Standards (IFRS)
The International Financial Reporting Standards (IFRS) provide guidance for preparing financial statements globally. This lesson will define the IFRS, outline its goals and objectives, and discuss the advantages and disadvantages of a single set of global accounting standards.
10. Common Size Balance Sheets & Financial Statements
In business, it is necessary for one company to compare its financial performance to that of another company. Learn how common size financial statements are used to compare one company's performance to another.
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Other chapters within the Corporate Finance: Help & Review course
- Introduction to Corporations: Help & Review
- Stockholders & Stakeholders: Help & Review
- Business Capital & Investments: Help & Review
- Raising Capital for Business: Help & Review
- Corporate Spending & Taxation: Help & Review
- Financial Accounting: Help & Review
- Analyzing Financial Statements: Help & Review
- Government-Business Relations: Help & Review
- Securities & Anti-Trust Laws: Help & Review
- Accounting Risk & Return: Help & Review
- Reform & Emerging Global Markets