Financial Literacy: Reading Financial Statements like a Pro (Video) (Course Id 1107)

• Who is this course for?
  This course is designed for managers and professionals, financial or otherwise, who need Continuing Professional Education (CPE) and want to improve their ability to understand financial statements.

• What is this course about or what problem does this course solve?
  It addresses the challenge of interpreting financial statements by teaching how to extract meaningful insights about business performance, financial strength, and cash flow.

• How can the knowledge from this course be used?
  Learners can use the knowledge to analyze financial statements and apply ratio analysis for assessing performance trends, comparisons with prior periods, and benchmarking against industry peers.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It enhances financial literacy by equipping professionals with tools to critically assess a company’s financial health, aiding in better decision-making and advisory roles.

• When is this course relevant or timely?
  The course is relevant whenever professionals need to evaluate or communicate financial performance, particularly in management, advisory, or review contexts.

• How is a course like this consumed or used?
  This self-study video course includes review and final exam questions, allowing learners to study and complete the course independently at their own pace.

One of the most crucial skills for any manager to develop, financial or otherwise, is an ability to pick up and read a set of financial statements. Financial statements tell important stories about how a business has performed, its level of financial strength, and the availability of cash generated. Unfortunately, these stories are often not explicitly stated and require understanding and further analysis.

In this course, we will work through a set of financial statements highlighting the key points of relevance. We will also learn about ratio analysis, which will help us generate a deeper level of insight into the financial results by making comparisons to prior periods and to peers. This is a foundational course that will deepen your understanding of what the numbers mean.

Video - NASBA QAS - NASBA Registry - 1107

Course Learning Objectives

• Analyze financial statements to evaluate profitability, operational performance, financial strength, and cash flow.
• Use ratio analysis to evaluate financial performance again trends, prior performance, and industry statistics.

Chapter 1 - Financial Literacy: Reading Financial Statements like a Pro

Chapter 1 Review Questions

Financial Literacy Glossary and Financial Ratio Reference Guide