Communications Management
In what form is financial information actually delivered to decision makers?
USD 10.00
Learning Objectives:
- Understand that financial statements provide the structure for companies to report financial information to decision makers.
- Identify each of the four financial statements typically reported by a company.
- List the normal contents of an income statement.
- Define "gains" and "losses" and explain how they differ from "revenues" and "expenses".
- Explain cost of goods sold.
- Compute gross profit and the gross profit percentage.
- Describe the location of income taxes within an income statement.
- Describe the method used to differentiate assets from expenses.
- Discuss the rationale for the principle of conservatism and its effect on financial reporting.
- Explain the reason dividend distributions are not reported within net income.
- Discuss the need to study an entire set of financial statements rather than focus in obsessively on one or two numbers such as net income.
- Define "retained earnings" and explain its composition.
- Define "capital stock" and explain the meaning of its reported account balance.
- Understand the lack of financial impact that the exchange of ownership shares between investors has on a company.
- List the types of accounts presented on a balance sheet.
- Explain the difference between current assets and liabilities and noncurrent assets and liabilities.
- Calculate working capital and the current ratio.
- Provide the reason for a balance sheet to always balance.
- Identify the three sections of a statement of cash flows and explain the types of events included in each.
Other course details:
- This is an introductory course that does not require any prerequisite.
- This course can be taken on a standalone basis.
- This course is chapter 3 in the book titled "Financial Accounting".
- It provides 2 PDU (Technical) towards your PMP professional development education.
Course Features
Credits:
2 PDU
Skill section:
Technical
Access:
Lifetime
Questions:
15