|Author :||Jae K. Shim, Ph.D., CPA|
|CPE Credits :||21.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Accounting - Accounting for Course Id 149
Analysis and Uses Of Financial Statements is a primer for financial statement analysis. This course is designed specifically 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, auditors, and other interested parties. This course can enhance your chance for success in business and investing; by enabling you to profit form 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.
|Usage Rank :||0|
|Prerequisites :||Basic math.|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :|
|Advance Preparation :||None.|
|Delivery Method :||Self-Study.|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||28-Sep-2012|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA Registry - 149
|Keywords :||Accounting, Analysis, Uses, Financial, Statements, cpe, cpa, online course|
|Learning Objectives :||
2. Describe the focus of financial statement analysis.
3. Outline the information needs of investors and creditors.
4. State the objectives of financial reporting.
5. Identify the qualitative characteristics of accounting information.
2. Explain the application of the basic principles of accounting.
3. Explain the meaning of generally accepted accounting principles.
4. Differentiate the cash basis of accounting from the accrual basis of accounting.
5. Describe the impact that constraints have on reporting accounting information.
2. Explain how the balance sheet portrays a company's financial po¬sition.
3. Describe how the income statement reveals the entity's operating per¬formance.
4. Determine and assess a company's cash inflows and cash outflows.
5. State the many types of accounts that may exist in the accounting system.
6. Outline the usefulness of the statement of cash flows.
7. Explain what the annual report is and read and understand its components, including the financial.
statements, footnotes, review of operations, auditor's report, and supplementary sched¬ules.
8. Discuss management’s discussion and analysis (MD&A).
9. Summarize how the Sarbanes-Oxley 404 reporting differs from traditional reporting.
2. Compare horizontal analysis and vertical analysis.
3. List the basic components of ratio analysis.
4. Distinguish between trend analysis, industry comparison, and benchmarking.
5. Calculate a comprehensive set of financial ratios and interpret them.
6. Explain the limitations of ratio analysis.
2. Compute and interpret liquidity ratios.
3. Compute and interpret activity ratios.
4. Define operating cycle and cash conversion cycle.
5. Define liquidity and activity and explain how they relate to each other.
6. Describe the LIFO reserve and explain its importance for comparing results of different companies.
2. List capital structure ratios and explain what they measure.
3. Measure operating leverage and financial leverage and distinguish between them.
2. Explain what ROI or ROA is.
3. Identify the basic components of the Du Pont formula and to explain how it can be used for profit improvement.
4. Interpret and compute ROE how it relates to ROI.
5. Describe how financial leverage affects the stockholder's return.
2. Compute earnings per share in a simple capital structure.
3. Compute earnings per share in a complex capital structure.
4. List market test ratios and calculate them.
5. Form an overall evaluation on a company’s financial performance.
6. Summarize the limitations of ratio analysis.
2. Identify the major classifications of cash flows.
3. Prepare and analyze the statement of cash flows.
4. Differentiate between net income and net cash flows from operating activities.
5. Distinguish between cash flow coverage (or adequacy) ratios and cash flow performance measures.
6. Analyze and interpret two major categories of cash flow ratios.
2. Outline the disclosure requirements for major segments of a business.
|Course Contents :||
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
Market Strength and Overall Evaluation
Analysis of Cash Flows
Interim Statements and Segment Analysis