How to Read Financial Statements

[Level 1] Understand the financial strength of a company and help us to make informed decisions
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  • 51 Videos
  • 3 Quizzes
  • 2 Downloads
  • 2.0 hrs

Course Curriculum

Understanding the balance sheet
19:16
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Understanding the income statement and cash flow
16:00
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$347.00
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Course description

Learn how to read financial statements. In this 2-part course, we use a public company's financial statements and annual report to understand the financial strength of a company and help us to make informed decisions.


Part 1 - Understanding the balance sheet
In this first module, we learn how to read the balance sheet and the related notes to Microsoft's 2010 financial statements to understand the financial strength of a company and help us make informed decisions. By the end of this module, you will have a solid understanding of the specific accounts of a typical balance sheet and related notes to the financial statements.

  • Navigate successfully through the notes to the financial statements.
  • How to read and interpret the various items in a published balance sheet.
  • Understand complex balance sheet concepts (e.g. deferred taxes, goodwill, investments, etc.)

Part 2 - Understanding the income statement and cash flow
In this second module, we continue reading Microsoft’s 2010 financial statements through to the income statement and statement of cash flows, and conclude by covering the key contents of an annual report. By the end of this module, you will have a solid understanding of a typical income statement, statement of cash flows and annual report in its entirety.

  • Understand the different ways to present an income statements and cash flow statement.
  • How to read and interpret the various items in a published income statement.
  • Identify the operating, financing, and investing activities of a company.
  • Determine what's contained in an annual report and where to find it.


This course is highly interactive with a wide range of applied exercises and case studies. Sophisticated search and navigation tools allow you to go at your own pace while pop quizzes test what you’ve just learnt. The course also includes two PDF reference guides – an accounting factsheet and a financial statements glossary - that can be used while taking the course and downloaded to your computer for future reference.

reading financial statements - balance sheet notes MD&A




how to understand an income statement understand a balance sheet


How to Read Financial Statements


Reviews (37)

PRESENTATION

by VINCENT TETTEH PERRY
THE PRESENTATION OF THE COURSE MATERIALS IS SUPERB.

Good course

by Severin Haemmerl
Great overview and nice examples using real-world financial statements. Only the solutions of the exercises could be explained in more detail.

Great Review

by Matthew Johnson
Helpful in explaining the basic components of financial statements. Downloadable resources are very helpful.

Wonderful Work:

by Javed Ahmed
I really appreciate the work your team has done. The way of teaching is perfect and understandable to a prudent minded person. Stay blessed the team of CFI. Profound Regards, Javed Ahmed

Making Management Decisions

by Alexander Korkor
It is very necessary to read Financial Statements. Financial Statement help managers make good decisions for a business/corporate institution, the stipulate the flow of cash, the value of assets, business income, and the development aspects of a corporation/business entity. Financial Statement reading is also advised for a manager as to how to run day-to-day expenditures and how to minimize losses and increase the owner's capital.
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by Vedula Sri Vinaya

PRESENTATION

by VINCENT TETTEH PERRY
THE PRESENTATION OF THE COURSE MATERIALS IS SUPERB.

by Uls Manikanta

Good course

by Severin Haemmerl
Great overview and nice examples using real-world financial statements. Only the solutions of the exercises could be explained in more detail.

Great Review

by Matthew Johnson
Helpful in explaining the basic components of financial statements. Downloadable resources are very helpful.

Wonderful Work:

by Javed Ahmed
I really appreciate the work your team has done. The way of teaching is perfect and understandable to a prudent minded person. Stay blessed the team of CFI. Profound Regards, Javed Ahmed

Making Management Decisions

by Alexander Korkor
It is very necessary to read Financial Statements. Financial Statement help managers make good decisions for a business/corporate institution, the stipulate the flow of cash, the value of assets, business income, and the development aspects of a corporation/business entity. Financial Statement reading is also advised for a manager as to how to run day-to-day expenditures and how to minimize losses and increase the owner's capital.

by Zura Kiria

by Mohamed Kanneh

by Camilo Rodriguez

by Teka Derick Tikum
This course brings you familiar with finance and accountIng terms and transactions in Financial Statements and how to interpret them. Was of great help during my studies. Thanks CFI

Reading financial statements

by Prem Shrestha
The course is quite simple. It is very useful for beginners. In reality, we have to deal with much more complicated financial statements. It could be useful for practicing individuals to have complicated examples as well.

by tin aung
Great course!!

by brian millen

Excellent

by Sanchita Kundu

by Robert Jackson

by Kajal Poddar
Good !

Reading Financial Statements

by Bienvenido Jesus B. Castro Jr., CPA
Very helpful & informative, the method is very simple but it works well !!

by Hassan Javaheri

by Sai kalyan Kunapareddy

by peter kimera
This course has been of great value to me and it has enabled me to acquire more knowledge

Reading Financial Statements

by Dr.Vijaya Venkateswari Krishnasamy
The Course was interesting and informative

Add more free courses

by Faysal Hossain
It is great to get such experience and helps

Review of Reading FS

by Przemyslaw Janus
If possible there could be a reference to the statement of changes in equity (as part of FS) and perhaps a short note on IFRS / US GAAP and main differences in treatment.

Reading Financial Statements

by Edwin Wangila
Great

Straight forward and clarified

by Richard Hastings
Cuts to the meat of the matter, and expresses financial statements in logical and sensible formats. Understands need for not going in to too much detail.

by Nuwan Tharanga Liyanage

by Tchounkeu Jemia Hermann Jephte

by Aarav Singh

Great course !

by Elie Haddad
This course is so informative !

by barbara arnold

by Cara Nowen

by Rustom Rupand

by Srikanta Tripathy

Review on Reading Financial Statements

by Swan Aung
Reading Financial Statements is very useful for those who are working in both the banking industry and business sectors.

Great insights into the notes in financial statements

by Stacy Rustom
Lisa does a great job of explaining a lot of detail that goes into the MD&A and notes sections of financial statements. There is a lot to understand beyond just the 3 statements, so this was really helpful for me.

Solid

by Chris Wang
This course is a great overview of the basics and is easy to follow. It was well paced , although I repeated several of the chapters which was easy thanks to the good interface. All in all a very solid course.