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The Financial Competence® Course
Course Outline
There are 7 lessons (each followed by a test) 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 and 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 nice certificate of completion suitable for framing.
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