What is financial statement analysis?

Financial statement analysis is the process of evaluating financial reports to assess profitability, liquidity, operational efficiency, and overall business performance.

How can I create a financial statement for my small business?

You can create a financial statement for company reporting by recording transactions accurately, classifying revenues and expenses, and preparing structured income statements, balance sheets, and cash flow statements.

Why are financial statements important in business?

Financial statements help business owners, investors, lenders, and managers evaluate financial health, support decision-making, measure performance, and plan future growth.

Who should enroll in this financial statements course?

This course is ideal for beginners, business students, entrepreneurs, aspiring accountants, and professionals interested in accounting and financial statement analysis.

What will I get if I subscribe to this Specialization?

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Is financial aid available?

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

Foundations of Financial Statement

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Foundations of Financial Statement

This course is part of Accounting and Financial Modelling Bootcamp Specialization

Instructors: Michael McDonald

Included with

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3 modules

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

6 hours to complete

Flexible schedule

Learn at your own pace

3 modules

Gain insight into a topic and learn the fundamentals.

Beginner level

Recommended experience

6 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Apply double-entry bookkeeping principles to accurately record and classify transactions in financial statements.
Construct and interpret key financial statement components, including income statements and balance sheets for financial statement analysis.
Analyze and connect the three core financial statements, including cash flow statements, to support integrated financial reporting & decision-making.

Skills you'll gain

Details to know

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Build your subject-matter expertise

This course is part of the Accounting and Financial Modelling Bootcamp Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 3 modules in this course

This course provides a comprehensive introduction to financial accounting and the structure, purpose, preparation, and interpretation of financial statements. Learners build a strong foundation in core accounting principles, including double-entry bookkeeping, the accounting equation, and revenue recognition. The course examines key financial statement components, including the income statement, balance sheet, and cash flow statement, while helping learners develop practical skills in reading financial statements and understanding their business relevance.

Participants will explore transaction classification and the relationships between assets, liabilities, equity, revenues, and expenses. Through hands-on exercises and applied examples, learners will gain experience in financial statement preparation, recording transactions, constructing financial statements for company reporting, and interpreting financial performance and position. Learners will also explore the cash flow statement and develop the ability to link the three core financial statements in integrated financial reporting and basic financial modeling contexts. Designed for beginners, this practical financial statements course emphasizes clarity, real-world application, and essential accounting and financial analysis skills.

Covers core accounting mechanics including debits and credits, the accounting equation, and revenue and expense recognition. Builds the foundation for all financial statement work.

What's included

11 videos2 readings1 assignment1 peer review1 discussion prompt

11 videosTotal 52 minutes

Intro Video to Course 2 minutes
Module Introduction 1 minute
Introduction to Debits and Credits 5 minutes
Journal Entries and Posting to the Ledger 5 minutes
Using T-Accounts to Track Transactions 5 minutes
The Accounting Equation Explained 6 minutes
Transaction Types and Their Impact 6 minutes
Analyzing Common Transactions 5 minutes
Accrual vs. Cash Basis Accounting 5 minutes
Revenue Recognition Rules 6 minutes
Matching Principle and Adjusting Entries 6 minutes

2 readingsTotal 10 minutes

Welcome to the Course: Course Overview5 minutes
A Relatively Painless Guide to Double Entry Accounting 5 minutes

1 assignmentTotal 20 minutes

Accounting Fundamentals 20 minutes

1 peer reviewTotal 20 minutes

Hands-On-Learning: Apply the Accounting Equation to Real-World Transactions 20 minutes

1 discussion promptTotal 5 minutes

The Double-Entry System in the Modern Age 5 minutes

This module explores two of the three core financial statements: the income statement and balance sheet. Learners will study the structure and purpose of each statement, understand how to interpret key line items, and apply profitability ratios to evaluate business performance. Emphasis is placed on how revenue, expenses, assets, liabilities, and equity interact to provide a snapshot of financial health.

What's included

10 videos1 reading1 assignment1 peer review1 discussion prompt

10 videosTotal 57 minutes

Module Introduction 2 minutes
Overview of the Income Statement 4 minutes
Key Line Items: Revenue, COGS, Operating Expenses 9 minutes
Profit Levels: Gross Profit, EBIT, Net Income5 minutes
Gross, Operating, and Net Margins6 minutes
EBITDA and EBIT Explained 6 minutes
Analyzing Trends and Common Pitfalls 5 minutes
Asset Categories and Valuation Basics6 minutes
Liabilities and Shareholders’ Equity 6 minutes
Working Capital and Capital Structure 7 minutes

1 readingTotal 5 minutes

Why Do Shareholders Need Financial Statements? 5 minutes

1 assignmentTotal 20 minutes

Income Statement and Balance Sheet 20 minutes

1 peer reviewTotal 20 minutes

Hands-On-Learning: Build an Income Statement and Balance Sheet from Raw Data 20 minutes

1 discussion promptTotal 5 minutes

Revenue Recognition and Ethical Boundaries 5 minutes

This module introduces the cash flow statement and shows how it links to the income statement and balance sheet to provide a complete picture of a company’s financial health. Learners will explore the direct and indirect methods of preparing cash flows, learn to calculate free cash flow, and build an understanding of how the three financial statements are integrated in professional models. The module emphasizes how cash flow is the critical link between profit, operations, and liquidity.

What's included

11 videos1 reading1 assignment2 peer reviews1 discussion prompt

11 videosTotal 58 minutes

Module Introduction 2 minutes
Purpose and Structure of the Cash Flow Statement 6 minutes
Operating, Investing, and Financing Flows 6 minutes
Direct vs. Indirect Method 6 minutes
Reconciling Net Income to Operating Cash Flow 6 minutes
Adjusting for Working Capital Changes 7 minutes
Calculating and Interpreting Free Cash Flow 6 minutes
How the Income Statement Flows to the Balance Sheet5 minutes
Linking Cash Flow with Net Income and Assets 5 minutes
Building a Simple Integrated Model 7 minutes
Course Wrap-Up4 minutes

1 readingTotal 5 minutes

What Financial Liquidity Is, Asset Classes, Pros & Cons, Examples 5 minutes

1 assignmentTotal 20 minutes

Cash Flow and Financial Statement Integration 20 minutes

2 peer reviewsTotal 80 minutes

Hands-On-Learning: Trace Cash Flow Through Operating, Investing, and Financing Activities 20 minutes
Project: Building the Accounting Cycle from Scratch: A Small Business Simulation 60 minutes

1 discussion promptTotal 10 minutes

Interpreting Cash Flow Categories for Decision-Making 10 minutes

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Instructors

Michael McDonald

Starweaver

8 Courses3,212 learners

Offered by

Starweaver

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Frequently asked questions

This course teaches the fundamentals of financial statements, including how to prepare, read, and analyze income statements, balance sheets, and cash flow statements.

The three core financial statement components are the income statement, balance sheet, and cash flow statement, which together provide insights into a company’s financial performance and position.

This course uses practical examples and hands-on exercises to help learners understand transaction recording, financial reporting, and financial statement analysis techniques.

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.