Name: Reading Financial Statements
Rating: 4.87 (4494 reviews)

Overview

Reading Financial Statements Course

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

Reading & Understanding the Balance Sheet

In this first module, we learn how to read the balance sheet and its related notes using a company case study, Espresso Software. This will help us understand the financial strength of the company and help us make informed decisions. By the end of this module, you will have a solid understanding of the specific accounts in a typical balance sheet and the related notes to the financial statements.

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

Free Accounting Course - CFI

Reading & Understanding the Income Statement and Cash Flow

In this second module of this free course, we continue reading Espresso Software’s financial statements. We look at the company’s 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.

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

How to read financial statements free course

More About This Free Financial Statements Course

This accounting course is highly interactive with many different applied exercises and case studies. Sophisticated search and navigation tools allow you to go at your own pace while pop quizzes test what you have learned. The reading financial statements course also includes two PDF reference guides – a financial statements glossary and an accounting factsheet. These can be used while taking the course and downloaded to your computer for future reference.

Free accounting classes online

Reading Financial Statements

Led by Lisa Dorian

Get Started Enroll For Free

Level 2

Approx 1.5h to complete

100% online and self-paced

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What you'll learn

Lesson

Multimedia

Exams

Files

Introduction

Course introduction

Downloadable files

Understanding the Balance Sheet

Session objectives

Session objectives Draft

Three key financial statements

Balance sheet

Income statement

Statement of cash flows

Simplified balance sheet

Current vs non-current

Interactive exercise 1

Espresso Software balance sheet demonstration

Investments

Deferred income taxes

Interactive exercise 2

Common vs preferred shares

Authorized vs outstanding share capital

Contributed surplus

Other comprehensive income

Interactive exercise 3

Balance sheet component matching exercise

Statement of shareholders' equity

The full disclosure principle

Three key financial statement notes

Significant accounting policies

Direct information

Indirect information

Interactive exercise 4

Noteworthy exercise

Understanding the Income Statement and Cash Flow Statement

Session objectives

Session objectives Draft

The three key financial statements

The income statement

Single step vs multi-step income statement

Cost of sales

Selling, general and administration

Gains and losses

Interactive exercise 5

Espresso Software income statement exercise

The cash flow statement

The cash flow activities

Operating activities

Investing activities

Financing activities

Direct method vs indirect method

Direct method

Indirect method

Key elements in a cash flow statement

Interactive exercise 6

Espresso Software cash flow statement exercise

The benefits of an annual report

Contents of an annual report

Management discussion and analysis

Espresso Software reporting challenge exercise

Summary

Qualified Assessment

Qualified assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Financial Modeling & Valuation Analyst (FMVA)® Certification

Reading Financial Statements is part of the Financial Modeling & Valuation Analyst (FMVA)® certification, which includes 39 courses.

Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
Career Prep Investment banking and equity research, FP&A, corporate development

Learn More

Financial Planning & Wealth Management (FPWM)™ Certification

Reading Financial Statements is part of the Financial Planning & Wealth Management (FPWM)™ certification, which includes 23 courses.

Skills Learned Financial Learning, Business Development, Investment Management, Practice Management, Relationship Management
Career Prep Financial Planner, Investment Advisor, Portfolio Manager

Learn More

What our students say

teaching method is very good.

Usama Khan

i love the course 2
I have the course and would recommend to my colleagues and friends.

Shujauddin Jalali

good
the exercises were very challenging and engaging

AJONG BERYL NDONKE

Great Platform to move towards progression
I must recommend every one to avail this opportunity and be the one to get enrolled in the course and extend your knowledge about financial statements

Afzaal Hussain

Very positive experience but there are still some little aspects that must be improved
Some concepts were treated very lightly without being well explained. For example, the difference between unrecorded and deferred income. However, my overall experience is good.

Miguel Arribas Barreras

Great Course
It gives you more insight into each component of every financial statement and how to better understand the operational and financial performance of a company by looking into their notes to their financial statements

Daysi Lizardo

Superb Course
Expanded my understanding in many ways that I couldn´t possible get through before. Course well structured, quiz and assignments relevant for day-to-day activities.

VLADMIR SATULA

great
good for gaining basic knowledge and moving towards complex courses is easy after doing these courses. i am an incoming mba student.

Jaikumar Jadhav

Extremely helpful 123
Extremely helpful and it is worth your time..

Kevin Edmondson

Perfect
I found the material to be well-organized, comprehensive, and engaging. The course content was presented in a clear and concise manner, and exercises were very helpful.

Pelesa Molefi

Brief but informative
The course covered the fundamental knowledge on the topic.

Abbos Juraev

superb and user friendly, easy to understand and apply

MAHESH BENDIGERI

good refresher
Good class for reminders of components of a financial statement

Tamra Garber

Awesome and Enjoyable
Please use CFI for deeper understanding of any course offered here

Rotich Zephania

Good course
Good informative course to study

Sonali Kumari

Great and easy to understand
Great learning experience.

Angus McCone

My experience was a good one on this course
It is educative and a good one to start with on one's knowledge in finance

Ruth Igberaese

This course helps people to build their accounting career path

Mohamed Abd El Monem Abd El Rahman Osman

The course is elaborative and very informing

Seth Opande

Authentic
I recently did the course, and I must say, it exceeded my expectations. It was knowledgeable, engaging, and provided practical examples that were easy to understand. The course covered all the essential topics. The course was also up-to-date with the latest accounting standards and regulations, which made it even more valuable. I learned a lot from this course and came away feeling more confident in my ability to analyze financial statements effectively. Overall, I highly recommend this financial statement course to anyone who wants to improve their financial literacy.

ARNOLD OLUNJA

Good for brush up your accounting fundamental
This course is good because it helps you to review your accounting knowledge and it is not difficult to understand at all.

Siriporn Rangsisophin

Very Good And Informative Couse for a refresher to all the Finance Students.

zahid sarangwala

Great program
Pushes you to complete each assignement and ace exam.

Daniil Ostroumov

Great course
Great course for any professional who wants to stay up-to-date on their skills, or anyone who wants to acquire a good understanding of financial statements.

Sokaina El Bekri

Interesting
Very useful knowledge

Amr Ahmed El-Sadek Abdel Kader

Simplified Basic Concepts
Simplified Basic Concepts of Financial Statements, Annual Report & MD&A

MOHAMMED SIDDIK PM

I really enjoy the session
You will really not regret doing this , it is as great course

Ridwan Nurudeen

Easy to use
Easy to use, clear and precise. Enjoyed the material.

Sarah Winchell

Equips candidates with knowledge they can use.
Unlike most certifications this course takes us through information that can be readily applied.

Dhiraj Sharma

My experience in this course has been great and my zeal for the course is ignited to the full
Accounts and finance causes have been deemed to be so complicated and difficulty to comprehend, however, your approach to this course is superb, you have managed to unlock what society considers to be unattainable to something easier than expected. Keep it up

Honour Mpata

Excellent
A very crispy course. A must to do for every accounts loving guys.

Devinder Singh

Concise and effective
Concepts are also broken down, allowing a better understanding overall

Gabriel Osorio

Outstanding Content
Very thorough and relevant

Philip Swift

Excellent
CFI learning platform is incredible. Planning to subscribe once i am able to

Grace Mwendwa

Amazing!
The course was well designed and the explaining by the instructor and graphics are very good and make it easier to understand. Thank you CFI for making this course available.

Aadityavikram Biyani

awesome learning
invest in accounting by learning it on this site

VINCENT JEDI

I walked away with a better understanding of content in the financial statements.

Marvo Lindsey

must course for all students in commerce field and also a prerequisite for all finance students.

gunjan advani

eading financial statements can be an important skill for investors, analysts, and other stakeholders who want to gain insights into a company's financial health and performance. Here are some key points to keep in mind when reviewing financial statements: Understand the different financial statements: Financial statements include the balance sheet, income statement, and cash flow statement. Each statement provides different information about a company's financial position, performance, and cash flows. Analyze key ratios: Financial ratios can provide insights into a company's financial performance and position. For example, the debt-to-equity ratio can help you understand how much debt a company is using to finance its operations, while the return on equity ratio can help you understand how efficiently a company is using shareholder equity to generate profits. Look for trends over time: Comparing financial statements over time can help you identify trends and patterns in a company's financial performance. For example, if a company's revenue is consistently growing year over year, this may indicate that the company is expanding its customer base or launching successful new products. Consider industry benchmarks: It can be helpful to compare a company's financial performance to industry benchmarks to understand how it stacks up against its peers. This can provide insights into whether a company is performing well relative to its competitors or if it is lagging behind the industry average. Pay attention to footnotes: Footnotes to financial statements can provide important context and additional information about a company's financial performance. For example, a footnote may explain a one-time event that impacted the company's financial results, such as a legal settlement or an acquisition. Overall, reading financial statements requires a combination of analytical skills, financial knowledge, and attention to detail. By understanding the different components of financial statements and analyzing key metrics, you can gain valuable insights into a company's financial health and performance.

Mohamed Nifasdeen Kalideen

very good
I recommend to any person who wants to perfect his career in the field of finance

Andrew Tatah

Awesome
I recommend this course for the beginner of financial analysis

Fouad Ganga

Excellent
The perfect place to learn

David Buabeng

Excellent beginning with outstanding pursue to be continues🤞
All i would say is that the course enhances core skill development and sharpens base of conceptual learning.

Sarthak Kumar

The first step to my dream job!!!
Basic and Fundamental but crucial at the same time.

Kaito Toya

Great learning experience.
Happy with the content and the study material. These courses will improve my skills as a Business Administrator. Thank you!

Nestor Rubio

Can you read financial statements? If not, then you need this refresher.
Understanding the fundamentals of financial statements, key terms, and categories is essential for anyone dealing in business. Just because you may not need to read them for your primary role, you most definitely need to understand what people are talking about and have the ability to understand what you see on paper if you have any role whatsoever relating to management.

Adam Wade

Amazing
It's a fantastic course for a beginner to understand any company's financial position.

Tooba Iqbal

It was really interesting. Learning with fun is the best thing
Everything is explined very clearly. It took just an hour and you get a knowledge which will be used for your future.

Azamat Khudoyberganov

Very good
The course is exciting and well structured.

TONY PRINCE SAYFORD

Excellent course for fundamentals!
This course covered all the basics, to help me understand corporate financial statements.

Erin Wells

Good overall
Loved the learning process

RONALD OCHIENG

Another excellent course.
I am very satisfied with the courses taken so far. I think it is an excellent learning tool.

Luis Amado

very interactive and engaging
It is well developed course that is easy to understand by non-financial guys like me!

Joseph Yuda Msoffe

Educative
The best learning experience I have ever had.

Nancy Mueni

nice course
its improves knowledge

Mohit Sangwan

Great value from a free resource.
Very concise and clear overview. As usual, awesome in-lesson exercises.

Prince Roger Pulvera

very useful
Very useful information, as it is easy to explain, and there is also a large amount of useful and new information for me.

Mohamed Magdy Karamallah

Very good course
Excellent tool for research and to complete the financial analysis skills

Carlos Eduardo Rangel Sánchez

Great for anyone!
Great for anyone starting out in the accounting field or a refresher for the experienced expert!

Carli Dippenaar

Great Experience
Very informative course content

Sylvester Adatsi

It’s fun and educating. Really enjoyable and simplifying finance and accounting

Victoria Adegboyega

Awesome experience
The dedication that they show is the main thing that always amazes me

Kazi Fardin Ahmed

Easy to understand.
Best course for finance students

Deepak R

Good Course update Financial related informations
For better career development, must attend this course

Srimurugan T A

Amazing
It provides a clear and comprehensive overview of the key concepts and principles involved in understanding and analyzing financial statements. The instructor is extremely knowledgeable and skilled in presenting the material in a way that is easy to understand and follow. The course is well-organized and provides a wealth of practical examples and exercises that help to reinforce the key points. I particularly appreciated the emphasis on real-world applications and the way the course tied in current events to the material. Overall, I highly recommend this course to anyone looking to improve their understanding of balance sheets and financial statements.

Aiswarya Suresh

Nice platform to excel your knowledge.
Great place to learn.

SURENDRA MAHAWAR

Very useful and complete course
Complete overview of the three main parts of the financial statements and clear explanations

Carlos Gutiérrez

Great course
Everyone who wanna be financial analyst should take this course

Ahmad Sandiffu'ad

Absolutely Helpful
Completely helped me to understand the fact of reading financial statements

Anfas Meerashahib

Excellent
Overall course is great.

Alok Kumar

The exercises are super helpful because we got to apply our learnings!

Sophia Nicole Diaz Dela Llarte

Wonderful opportunity for me
Nice amazing super extra ordinary funtastic mind blowing course 😊

Amardeep Kumar

Great start for the finance career
this course has been useful and interesting from the beginning , definitely gonna do more courses with CFI.

ZAHRA YESLAM

Fantastic I loved it.

Adam Eckard

Great
The materials is great

Arif Rifano

Great financial statement analysis refresher
Good course as referesher for experienced professional and introduction for someone who learn to read financial statement.

Halim Rusli

A great tool to keep up to date on a course one intends to study
I will recommend all students to take up a course here to always update him/herself in the specific area of study.

Joyland Clement Kwarshie

Amazing
This course is very helpful for the students. The faculty helped in understanding the topic very well.

Aniket Saluja

Bravo for the exceptional effort.
Concise, to the point and priceless opportunity to refresh financial concepts. Keep up the good work.

Agha Kamil Yar

Great way to get you thinking like a Finance Professional
I'm bout to start doing interviews as a Credit Analyst for a bank and this got me in the habit of thinking like a Financial Professional and I can also highlight it as experience.

Temi Kolarinwa

Very nice platform
Amazing skills addition with great instructors

Aboki Gilbert

It is beneficial to take the course.

Elisha Lamichhane

Exciting
This is a great refresher course to undertake as a financial expert and/or analyst.

JUDE OLABANJI

As I am completing a lesson it make me feels like I am stepping forward towards my dream and goals the course helps me to understand about the corporate world and finance in a easy way
I love the teaching easy to understand for me I have to watch a video 2 times to understand but its worth it the quiz is fun and looking forward to know about this course more deeper

Viraj Pawar

very exciting experience
this course can so much help in matters of having a quick and clear learning to have enough exposed studying of Finance & Acoounting essentials

Sultan Alsenani

A very beneficial important course
This course is very Beneficial to all accountant and finance, specially those need to refresh their mind.

Mohamed Anas

Thrilling and Captivating
It was my first course on CFI, and it meet my expectations of impactful and extensive learning experience.

Brian Nyakwama

Unforgettable
You need to experience it. It's a luck

Travis ADOU

I learned effectively
the topic was very effective and the teacher was very clear

Christine Leonardo

Very well designed
Kudos to creators, kindly bring in more free and affordable basic or fundamental courses

Mukund V. Koushik

Amazing. It's beyond perfect. The tutors are excellent
I should have found CFI earlier

Lois Boye

A Must For Finance Aspirants
Starts with the basics and strengthens your foundations step by step.

Roshan Parida

Very useful and well organized course
Hello, I started following the free courses from Italy and although my English isn't excellent I can follow the lessons with subtitles and reducing the speed of the videos. I believe I will progress to the full portion of the FMVA course to achieve the certification that seems within my reach.

Tito Cubesi

Very Efficient
I like this Course. Its really Helpfull for me

Anumit Jana

Accounting system
This course is very important because the help the students who study financial accounting

Huda jama Ibrahim

Excellent platform
Very encouraging way of teaching and sharing exercises, helps to understand and remember things better.

venkata laxmi

Precise and informative
Thanks @CFI for this amazing course materials, which have broadened my perspective on financial statement analysis.

Sreejith Sreedharan

i have learned a lot

Izukanji Namonje

i have learned a lot

Izukanji Namonje

Excellent courses

Kingsley Songliedong

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Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.