Understanding Financial Statements: Company Performance

About this course: This course is designed to provide a basic understanding of financial statements with an emphasis on the income statement. Building on the foundation formed in the first course, you will learn about the third of our three measurement questions and how the income statement helps to answer this final measurement question. Returning to the real business people introduced in the first course, this second course describes the basic content of income statement in a simple yet relevant context. The course ends by summarizing many of the lessons learned in both courses to leave you with a lasting impression about what financial statements are and how accounting can work for you. We all know that accounting is “the language of business”; let’s make learning this language engaging, and perhaps even fun! Upon successful completion of this course, you will be able to: • Describe the purpose of an income statement. • Define the basic components of an income statement. • Recognize and understand the meaning of several items typically presented on an income statement. • Explain the broader purpose of financial statements and the role of accounting in producing the financial statements. • Read and, to some extent, interpret real-world income statements. If you enjoy this business course and are interested in an MBA, consider applying to the iMBA, a flexible, fully-accredited online MBA at an incredibly competitive price offered by the University of Illinois. For more information, please see the Resource page in this course and onlinemba.illinois.edu.

Created by:  University of Illinois at Urbana-Champaign

• Taught by:  Kevin E. Jackson, Associate Professor of Accountancy and PwC Faculty Fellow

  Department of Accountancy, College of Business

Basic Info Course 2 of 5 in the Fundamentals of Accounting Specialization Level Beginner Commitment 4 weeks of study, 2-4 hours/week Language English How To Pass Pass all graded assignments to complete the course. User Ratings 4.6 stars Average User Rating 4.6See what learners said Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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University of Illinois at Urbana-Champaign The University of Illinois at Urbana-Champaign is a world leader in research, teaching and public engagement, distinguished by the breadth of its programs, broad academic excellence, and internationally renowned faculty and alumni. Illinois serves the world by creating knowledge, preparing students for lives of impact, and finding solutions to critical societal needs.

Syllabus


WEEK 1


Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.


5 readings, 1 practice quiz expand

1. Reading: Syllabus
2. Reading: About the Discussion Forums
3. Reading: Glossary
4. Practice Quiz: Orientation Quiz
5. Reading: Updating Your Profile
6. Discussion Prompt: Getting to Know Your Classmates
7. Reading: Social Media

Module 1: How Did You Perform? Introducing the Income Statement
This module introduces you to the primary components of the income statement by focusing on the concepts of revenue and cost of goods sold.


2 videos, 2 readings, 2 practice quizzes expand

1. Reading: Module 1 Overview
2. Reading: Module 1 Readings
3. Video: 1-1. How Do You Perform?
4. Practice Quiz: Lesson 1-1 Practice Quiz
5. Video: 1-2. A Look at Cost of Goods Sold
6. Practice Quiz: Lesson 1-2 Practice Quiz

Graded: Module 1 Quiz

WEEK 2


Module 2: Finishing Out the Income Statement and Managing Cash
This module discusses examples of other income and expenses included in a typical income statement and introduces you to the statement of cash flows.


2 videos, 2 readings, 2 practice quizzes expand

1. Reading: Module 2 Overview
2. Reading: Module 2 Readings
3. Video: 2-1. Finishing Out Income Statements
4. Practice Quiz: Lesson 2-1 Practice Quiz
5. Video: 2-2. How Did You Manage Cash?
6. Practice Quiz: Lesson 2-2 Practice Quiz

Graded: Module 2 Quiz

WEEK 3


Module 3: Final Elements of Financial Statements
This module highlights common notes to the financial statements and provides insights from an expert.


2 videos, 2 readings, 2 practice quizzes expand

1. Reading: Module 3 Overview
2. Reading: Module 3 Readings
3. Video: 3-1. Taking Note of the Notes to the Financial Statements
4. Practice Quiz: Lesson 3-1 Practice Quiz
5. Video: 3-2. The Auditor’s Report
6. Practice Quiz: Lesson 3-2 Practice Quiz

Graded: Module 3 Quiz

WEEK 4


Module 4: Wrapping Up Financial Statements and What Lies Ahead
This module revisits what the first two courses of the Fundamentals of Accounting Specialization have covered and examines how ratio analyses can help you evaluate a company.


2 videos, 2 readings, 2 practice quizzes expand

1. Reading: Module 4 Overview
2. Reading: Module 4 Readings
3. Video: 4-1. Ratios that Help Tell a Story
4. Practice Quiz: Lesson 4-1 Practice Quiz
5. Video: 4-2. Looking Back and Ahead
6. Practice Quiz: Lesson 4-2 Practice Quiz
7. Discussion Prompt: Final Reflections

Graded: Module 4 Quiz
Graded: Company Performance Peer Review Assignment