Overview

You will get substantially more out of Topic 2 if you print out the following Word documents and write notes on these documents as you follow along in the lectures. In “face to face” or “live” lectures I have found this to be extremely effective learning tool.

• Income Statement
• Balance Sheet
• Statement of cash flows
• Wixsolution

Module Content

Module 2.1 Income Statement

This module is all about the Income Statement which is also commonly known as the Profit and Loss Statement and the Earnings Statement. Different formats will be discussed along with the various items reported on the income statement. The Income Statement is probably the most known of all the financial statements and is one that heavily relied upon in making key decisions.

Lecture Material

Income Statement
     Transcript| PDF Slides

 

Module 2.2 Balance Sheet

Module 2.2 is all about the Balance Sheet. The Balance Sheet is one of the most recognized of the financial statements. In this module we will take a look at the following aspects of the Balance Sheet:
Format

• Assets
• Liabilities
• Stockholders’ Equity
• Purpose

Lecture Material

Balance Sheet
     Transcripts| PDF Slides

Module 2.3 Statement of Retained Earnings

The Statement of Retained Earnings is a small in size but big on information. This statement reports the changes in retained income from the current and previous periods along with any payments or dividends to investors.

Lecture Material

Retained Earnings
     Transcripts | PDF Slides

 

Module 2.4 Statement of Cash Flows

In module 2.4 we will briefly review the basics of the Statement of Cash Flows. We will go over the different formats, the information provided to financial statement users, how it is categorized within the statement and finally why this information is important.

Lecture Material

Statement of Cash Flow
     Transcripts| PDF Slides

Module 2.5 Statement of Cash Flows

Module 2.5 we will briefly discuss the other statements that are found within the annual report. More in depth coverage of these topics are subjects of later accounting classes. For now just know that they are there and what information can be retrieved from them.

Lecture Material

Statement of Stockholders' Equity
     Transcripts| PDF Slides

 

Module 2.6 Statement of Cash Flows

In 2.6 the relationship between the four main statements talked about in this topic is discussed. As you will see the statements are linked together like a jigsaw puzzle and play key roles within one another. Please pull up the three handouts or documents that accompanied previous modules for this discussion. Those Word documents are:

• Income Statement
• Balance Sheet
• Statement of cash flows

Lecture Material

Comprehensive Income Statement
     Transcript| PDF Slides