Understanding Financial Statements: Company Position from Coursera

This course is designed to provide a basic understanding of financial statements with an emphasis on the balance sheet. However, to understand accounting driven financial statements, it is important to recognize that accounting is less about counting and more about measuring. “What is it that is being measured?” Well, as the course unfolds, you will learn about the three measurement questions and how the balance sheet helps to answer the first two of these questions. By touring a real company and interviewing real business people, the course describes the basic content of financial statements in a simple yet relevant context. The goal of the course is to leave a lasting impression about what balance sheet consists of and what it reveals. The next course in the Fundamentals of Accounting Specialization completes the conversation by addressing the remaining measurement question.

Upon successful completion of this course, you will be able to:

• Describe the purpose of a balance sheet.

• Define the three components of a balance sheet.

• Recognize and understand the meaning of several items typically presented on a balance sheet.

• 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 balance sheets.

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.

What's inside

Syllabus

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.

Module 1: What Is Accounting and Why Are Financial Reports Important?

This module will introduce you to the basics of financial statements by emphasizing the links between accounting, measurement, and financial statements.

Module 2: Assets – What Do You Own?

This module will explain the basics of the balance sheet, provide a working definition of assets, and give you an overview of assets typically presented on the balance sheet.

Module 3: Liabilities – What Do You Owe?

This module will introduce you to the concept of liabilities and explain what they are and how they can arise.

Module 4: Equity and How the Balance Sheet Fits Together

This module will build an intuition for what equity represents. It will also explain how the components of the balance sheet relate to one another.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Covers foundational accounting concepts, which are core skills for understanding accounting

Provides a clear definition of assets and an overview of commonly seen assets on a balance sheet

Provides a clear definition of liabilities and explains their sources

Walks learners through how to read and interpret real-world balance sheets

Takes an engaging approach by using interviews and touring a company to explain concepts

Explicitly requires learners to come in with extensive background knowledge first

Reviews summary

Financial literacy for beginners

According to students, this course is a comprehensive introduction to financial literacy that is easy to understand. Learners specifically appreciate clear and concise explanations. The course also includes engaging assignments that help students master the material.

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Understanding Financial Statements: Company Position with these activities:

Review the basics of accounting terms and definitions

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Sharpen your understanding of key accounting terms and concepts before starting the course to build a stronger foundation.

Browse courses on Accounting Concepts

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Review a glossary of accounting terms and definitions.
Identify 10 key accounting terms and define them in your own words.

Read a book about the basics of accounting

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Establish a strong foundation for understanding accounting concepts by reading a book specifically designed for beginners.

View Bookkeeping All-in-One For Dummies (For Dummies... on Amazon

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Read Chapters 1-3 to gain an overview of accounting basics.
Complete the practice exercises at the end of each chapter to reinforce your understanding.
Write a summary of the key concepts covered in the book.

Watch tutorials on the balance sheet equation

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Visually learn about the structure and components of the balance sheet to enhance your understanding.

Browse courses on Accounting Equation

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Search for online tutorials on the balance sheet equation.
Watch at least three different tutorials to gain multiple perspectives.
Take notes and summarize the key points of each tutorial.

Four other activities

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Complete practice problems on preparing a balance sheet

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Reinforce your understanding of balance sheet construction and improve your analytical skills.

Browse courses on Financial Statement Analysis

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Download practice problems from the course website or other online resources.
Work through the problems step-by-step, referring to your notes and the course materials for assistance.
Check your answers and identify areas where you need additional practice.

Analyze Financial Statements

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Demonstrate your understanding of the balance sheet by creating a detailed analysis of five different companies' financial statements.

Browse courses on Balance Sheet Analysis

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Select five companies from different industries.
Gather their financial statements for the past three years.
Calculate key financial ratios and compare them across companies and years.
Identify trends and patterns in the financial data.
Write a report summarizing your findings and insights.

Attend a workshop on financial statement analysis

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Gain insights from industry professionals and learn best practices for analyzing financial statements.

Browse courses on Financial Statement Analysis

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Research upcoming workshops on financial statement analysis.
Register and attend the workshop, taking detailed notes during the sessions.
Connect with other attendees and industry experts to expand your network.

Organize and review your course materials

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Stay organized and strengthen your understanding by regularly reviewing and整理ing your course materials.

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Create a dedicated folder or notebook for your course materials.
Regularly review your lecture notes, readings, and assignments.
Organize your materials by topic or module to improve accessibility.

Career center

Learners who complete Understanding Financial Statements: Company Position will develop knowledge and skills that may be useful to these careers:

Management Consultant

A Management Consultant is responsible for advising companies on how to improve their operations and make better decisions. Understanding Financial Statements: Company Position may be useful for Management Consultants because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Management Consultant

Financial Analyst

A Financial Analyst is responsible for analyzing financial data and making recommendations on investments and other financial decisions. Understanding Financial Statements: Company Position may be useful for Financial Analysts because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Financial Analyst

Investment Banker

An Investment Banker is responsible for advising companies on mergers and acquisitions, as well as other financial transactions. Understanding Financial Statements: Company Position may be useful for Investment Bankers because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Investment Banker

Portfolio Manager

A Portfolio Manager is responsible for managing a portfolio of investments for clients. Understanding Financial Statements: Company Position may be useful for Portfolio Managers because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

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Risk Manager

A Risk Manager is responsible for identifying and managing risks for organizations. Understanding Financial Statements: Company Position may be useful for Risk Managers because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Risk Manager

Auditor

An Auditor is responsible for reviewing a company’s financial records and ensuring that they are accurate and compliant with regulations. Understanding Financial Statements: Company Position may be useful for Auditors because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Auditor

Tax Accountant

A Tax Accountant is responsible for preparing and filing tax returns for individuals and businesses. Understanding Financial Statements: Company Position may be useful for Tax Accountants because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Tax Accountant

Venture Capitalist

A Venture Capitalist is responsible for investing in early-stage companies. Understanding Financial Statements: Company Position may be useful for Venture Capitalists because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Venture Capitalist

Accountant

An Accountant is responsible for managing a company’s financial records. Understanding Financial Statements: Company Position may be useful for Accountants because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Accountant

Budget Analyst

A Budget Analyst is responsible for preparing and analyzing budgets for organizations. Understanding Financial Statements: Company Position may be useful for Budget Analysts because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

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Financial Manager

A Financial Manager is responsible for overseeing a company’s financial operations and making financial decisions. Understanding Financial Statements: Company Position may be useful for Financial Managers because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

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Controller

A Controller is responsible for managing a company’s accounting and financial reporting functions. Understanding Financial Statements: Company Position may be useful for Controllers because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

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Chief Financial Officer

A Chief Financial Officer is responsible for overseeing a company’s financial operations and making strategic financial decisions. Understanding Financial Statements: Company Position may be useful for Chief Financial Officers because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

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Underwriter

An Underwriter is responsible for assessing and pricing risks for insurance companies. Understanding Financial Statements: Company Position may be useful for Underwriters because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

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Treasury Analyst

A Treasury Analyst is responsible for managing a company’s financial assets and liabilities. Understanding Financial Statements: Company Position may be useful for Treasury Analysts because it teaches the basics of financial statements, including the three components of a balance sheet and how they are related.

See salaries and explore the career path for Treasury Analyst