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Courses & Tutorials Accounting Topics: Accounts Adjusting/Closing Amortization Auditing Bank Reconcile Bartering Cash/Accrual Cash Flow Credit & Collections CVP Analysis Depreciation Disbursements Financial Statements General General Ledger Inventory Journal Leases Payables Payroll Receivables Sales Tax Accounting

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Accounting Fundamentals Course - During the online accounting course you will learn the basics of accounting education such as double-entry bookkeeping, while also learning how to analyze and record financial transactions, as well as prepare various financial reports at the end of the fiscal period. Accounts receivable, accounts payable, payroll procedures, sales taxes, and various common banking activities will be discussed. Learn more or buy this course.

 

 

Income Statement Example

A statement that summarizes revenues and expenses.

 

Balance Sheet Examples

A statement listing the total assets and liabilities, indicating the net worth of the company for the given time period.

 

Statement of Owner's Equity Example

A statement that summarizes the owner's net worth.

 

Income Statement

The income statement is one of the major financial statements used by accountants and business owners. (The other major financial statements are the balance sheet, statement of cash flows, and the statement of stockholders' equity.) The income statement is sometimes referred to as the P&L (profit and loss statement), statement of operations, or statement of income.

 

Evaluating Financial Performance

Free short course on how to evaluate financial statements using ratio analysis, vertical analysis, and horizontal analysis

 

Common-Size Financial Statements

An easy way to spot trends in your balance sheet and income statement data from a number of years, or to compare your information with that of another company or industry group, is to use "common size" financial statements.

 

 

Anatomy of an Annual Report

While most annual reports contain optional elements, all reports contain information the SEC requires.

 

Balance Sheet

Also called a statement of financial position, a balance sheet is a financial "snapshot" of your business at a given date in time. It lists your assets, your liabilities, and the difference between the two, which is your owner's equity, or net worth.

 

Guide to Understanding Financial Statements

This Guide is for people with little experience reading financial statements or annual reports.

 

Income Statement

Also called a profit and loss statement, or a "P&L," an income statement lists your income, expenses, and net income (or loss). The net income (or loss) is equal to your income minus your expenses.

 

Statement of Cash Flow

Sample of how to create a Cash Flow Statement

 

Statement of Changes in Equity

This type of financial statement is used to bridge the gap between the amount of equity the owners have in the business at the beginning of the accounting period and the amount of their equity at the end of the period.

 

Statement of Changes in Position

The statement of changes in financial position provides data that are not explicitly present in the balance sheet or the income statement. This statement helps to explain how your company acquired its money and how it was spent. This statement can also help to identify financing needs, to identify cash drains, and to identify holes in the cash budgeting process.

 

What to do with Your Financials

The creation of your financial statements is largely a mechanical exercise. The numbers to be used are found in your accounting records after the books are closed at the end of the period; to draw up the statements, you, your accountant, or your accounting software simply look up the numbers and plug them into the statement.

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