Evaluate companies based on their financial statements

Persons credited with this course can identify the four basic financial statements (balance sheet, income statement, cash flow statement and statement of owner’s equity) and are able to evaluate the liquidity, efficiency, profitability and risk of the company using standard financial ratio analysis.

$200.00

Course Content

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Module 1 – Construct the four basic financial statements 9 Lessons | 1 Quiz

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Module Content

0% Complete 0/9 Steps

1.1. A conceptual framework for financial statements is reviewed and an explanation is given of the different components of the framework and the purpose and relative value of each

1.2. Information for reporting purposes (financial accounting) is differentiated from information for decision purposes (management accounting)

1.3. Financial items and categories are allocated to the correct statement for a set of accounts

1.4. What Are the Important Income Statement Expense Headings? (1)

1.5. How Do Expenses Impact Profits?

1.6. Example Income Statement

1.7. What Are Expense Category Accounts?

1.8. The relationship between items on the different statements is made apparent with examples

1.9. The principles of GAAP (Generally Accepted Accounting Practice) relating to the financial statements are applied for a set of accounts

Quiz 1 – US 12883

Module 2 – Identify factors affecting the sustainability of economic entities 3 Lessons

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Module Content

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2.1. Revenue stream generation activities of a firm are identified using financial statements

2.2. The characteristics of financial success are identified with examples

2.3. The role of various financial ratios in determining the firm’s financial viability is discussed in relation to two companies

Module 3 – Analyse the firm to establish its financial viability 3 Lessons

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Module Content

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3.1. The financial viability of the firm is evaluated using the four basic financial statements and ratios

3.2. The financial state of affairs of the firm is compared meaningfully to industry benchmarks or norms

3.3. The financial consequences of various managerial decisions are predicted using financial statement analysis, and alternative recommendations are made when necessary to prevent financial failure

Module 4 – Report on the financial viability of the firm 2 Lessons | 1 Quiz

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4.1. The report is constructed using the firm’s best practice requirement or template

4.2. Recommendations are made regarding investment in the firm

Quiz 2 – US 12883