In this video, learn how financial statements are used by interested parties. This includes both internal and external financial communication.
- The culmination of the accounting process … is the production of the financial statements. … - And then the real fun begins, … the analysis of those financial statements. … - Users of those financial statements … examine those statements to see trends over time. … For example, analysis of Walmart's income statement … for the year ended January 31st, 2019 … reveals that the company's sales increased 2.9% during 2018. … Not bad. … - [Left Instructor] Users of financial statements … also use those statements to compare different companies. … So at the same time Walmart's sales were going up 2.9%, … Target's sales were going up by 3.6%. … - [Right Instructor] And Amazon's sales were increasing … by a whopping 31%. … - Users of financial statements also use those statements … to compute a variety of financial ratios. … A financial ratio is simply one financial statement number … divided by another. … - [Right Instructor] For example, … Walmart's cost of sales divided by its sales … tells you the average Walmart purchase cost …
- Accounting basics
- Reviewing the balance sheet and income statement
- Credits, debits, and journal entries
- Making financial statements
- Issues in financial accounting
- Revenue recognition
- Deferring taxes
- Analyzing financial statements
Skill Level Beginner
Accounting Foundations: Internal Controlswith Jim Stice1h 29m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
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