Principles of Financial Statements


Overview/Description
Target Audience
Expected Duration
Lesson Objectives
Course Number


Overview/Description
This course presents an overview of the principles of financial statements, introducing the learner to critical concepts and terminology necessary for understanding the rules impacting the presentation of numbers on financial statements, and the cash cycle of financial management.

Target Audience
This course is targeted specifically for business managers, financial professionals, and other business professionals who have the need to understand financial statements.

Expected Duration (hours)
3.5

Lesson Objectives

Rules, Decisions, and Numbers

  • recognize the importance of understanding the rules that impact on how the numbers on financial statements are reported.
  • identify the sources of the rules that are followed in accounting practices.
  • describe the implications of the audit process and associated notes when reading financial statements.
  • correlate financial data, as defined under accounting rules, to company value and financial characteristics.

    • The Cash Cycle for Performance Analysis

  • appreciate the importance of understanding the four phases of the cash cycle of financial management.
  • apply the implications of management issues associated with Phase One of the Cash Cycle, which deals with leverage.
  • apply the implications of management issues associated with Phase Two of the Cash Cycle, which deals with liquidity and profitability.
  • apply the implications of management issues associated with Phase Three of the Cash Cycle, which deals with efficiency.
  • apply the implications of management issues associated with Phase Four of the Cash Cycle, which deals with profitability and market value.

    • Course Number:
    FIN0251