Financial Statements Explained
Balance Sheets, Income Statements, Cash Flow Statements, Financial Analysis Made Easy

What you will learn

Understand the basics of financial concepts

Know financial reporting standards and regulators

Analyze items on financial statements

Conduct variance analyses of companies


By the end of this course, you will not only understand how to read and analyze the three types of financial statements, but you will know the applications of this beyond work and school. The purpose of this course is to acquit you with knowledge that can prepare you for the many instances in which you will require an understanding of finance and financial statements.

Finance is an industry you will undoubtedly come across, and this course is designed to prepare you for that. I made this course because I believe in the art of simplification. I hope you enjoy it as much as I did when creating.

Get Instant Notification of New Courses on our Telegram channel.

The learning objectives of the course are as follow:

  • Understand the purposes and types of financial statements
  • Navigate SEC’s EDGARΒ database and learn about the 8k, 10q, and 10k
  • Define the purposes of the Generally Accepted Accounting Principles and the International Financial Reporting Standards and identify their role in finance and accounting
  • Identify the types of line items on the balance sheet, income statement, and cash flow statement
  • Explain the financial metrics and ratios used to gauge the financial position of a company
  • Conduct and follow variance analyses of companies using Excel


Introduction to the Course

Course Preview
On Finance

Introduction to Financial Statements and GAAP

Introduction to Financial Statements
GAAP: Matching Principle and Revenue Recognition
GAAP: Matching Principle and Revenue Recognition

Balance Sheet

Balance Sheet Components
Line Items
Enterprise Value
Amazon’s Q3 Variance Analysis

Income Statement

Income Statement Components
Mastercard’s 2021 Variance Analyses (Mark-to-Market Explained)

Financial Ratios

Four Types of Financial Ratios
Profitability Ratios
Liquidity Ratios
Efficiency Ratios
Leverage Ratios

Accounting Standards

Differences between GAAP and IFRS
OPTIONAL: Inventory Valuation

Cash Flow Statement

Introduction to Cash Flow
Cash Flow Statement
Time Value of Money
Net Present Value


Summary of lessons