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Financial Competence
CD0021 Produced by Competence Software |
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Duration: 30 hours
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What Students Learn: There are 7 Lessons as follows: Lesson One - Overview Includes definition of Income Statement, Balance Sheet and Cash Flow Statement - what they are and what they measure about a business. Drills allow practice of the main concepts. Lesson Two - The Income Statement Takes each item on an Income Statement, and thoroughly covers what the item shows about a business. The student constructs an actual Income Statement step-by-step. Coverage includes the difference between Gross Sales and Revenue, Cost of Sales, Gross Margin, Selling Expense, General and Administrative Expenses, Operating Margin, Depreciation & Amortization, Other Expenses, Taxes and Net Profit. Lesson Three - The Balance Sheet Coverage includes all the Asset, Liability and Equity items on a Balance Sheet: Cash, Accounts Receivable, Inventory, Prepaid Expenses, Property Plant & Equipment, Intangibles, Accounts Payable, Notes Payable, Accrued Expenses, Taxes Payable, Deferred Taxes, Long-Term Debt, Preferred Stock, Common Stock, Paid-in-Capital, Retained Earnings. Lesson Four - The Cash Flow Statement Coverage includes Cash from Operating Activities - Sales, Payments for Products, Payments for Operating Expenses, Interest Payments; Cash from Investing activities like purchase or sale of Assets; Cash from Financing activities like Short and Long-Term Borrowing, Capital Stock Issue and Dividends to Shareholders. Lesson Five - Linking the Statements The student learns how to read all three statements together and how the various items on one statement relate to the other two statements. Also included is a graphical drill on how "accrual accounting" works and how this is reflected on a cash flow statement. Lesson Six - Analyzing the Statements The student learns what the various financial ratios are and what they mean. These are the ratios used by investors, bankers, suppliers, etc. in evaluating the relative strengths of a company. These ratios are drilled using the actual numbers input by the student. Included in this lesson is a thorough tutorial on inventory costing and how the selection of different costing methods effects reported profits and assets. Lesson Seven - Review, Exam and Certificate of Completion After a complete review of the major concepts, the student takes a final exam and is then eligible for a certificate of completion suitable for framing.
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