Preparing financial statements
SKU: 06-279-01-CPE
Credit Hours: 3
CPE Category: Finance
Delivery Method: Video
Instructor: Jamie Pratt
Course Description:
This course will demonstrate the process of preparing a complete set of financial statements, including discussions of the basic accounting equation, journal entries, ledgers, and contra accounts (e.g., accumulated depreciation and treasury stock). It also will address the differences between accruals and cash flows, and the items that reconcile net income on the income statement with net cash from operating activities in the operating section of the statement of cash flows.
After completing the course you should be able to:
- State the basic accounting equation and explain how it relates to the financial statements.
- Apply the basic accounting equation to transactions that lead to a simple balance sheet.
- Apply the basic accounting equation to transactions that lead to a complete set of financial statements.
- Describe the structure and role of journal entries and ledgers.
- Use journal entries and ledger accounts to prepare a simple balance sheet.
- Use journal entries and ledgers accounts to prepare a complete set of financial statements.
- Explain how closing entries transition the financial statements from one period to the next.
- Define contra accounts and the role they play on the financial statements.
- Define treasury stock and describe where it can be found on the financial statements.
- Demonstrate how the sale of non-inventory assets affects the financial statements.
- Discuss and illustrate the difference between the accrual-basis and cash basis of accounting.
- Demonstrate using several examples how net income on the income statement can be reconciled with net cash from operating activities on the statement of cash flows.