Accountants and finance personnel are schooled in the basics of the concept of financial statements preparation and presentation. Focus is often on the calculations, format and purposes of the statements. Once individuals have entered the working world, they may find the financial statement process a bit confusing and more difficult to understand. This is in part to the many concepts involved when properly preparing the income statement, balance sheet and cash flow statement in accordance with generally accepted accounting principles. However, to be able to provide true value to your organization it is important the professional understand the intricacies of each statement and how they are used to manage and monitor the financial health of an organization.
This course is focused on discussing the concepts of the primary financial statements utilized in both for profit and not-for-profit entities. The primary variances in the statements lies in how they are titled as well as the concept of shareholder’s equity vs. net assets in a not-for-profit.
• For-Profit Financial Statement : Balance sheet, income statement, cash flow
• Not-for-Profit Financial Statements : Statement of activities, statement of operations and cash flow
Management and professionals must understand that the financial statements are more than a series of computations and numbers. This course will cover the important concepts of how the statements interact and relate to each other in order to provide management with critical information needed to manage financial stability of their organization. No one statement tells the complete story, but combined they provide a powerful tool for management.
Publication Date: June 2020
Designed For
Management and professionals must understand that the financial statements are more than a series of computations and numbers. This course will cover the important concepts concepts of how the statements interact and relate to each other in order to provide management with critical information needed to manage financial stability of their organization. No one statement tells the complete story, but combined they provide a powerful tool for management.
Topics Covered
- Balance Sheet ” For Profit
- Statement of Changes in Equity
- Statement of Financial Position NFP
- Income Statement For Profit
- Statement of Activities NFP
- Statement of Cash Flow (SCF) For Profit
- Statement of Cash Flow NFP
- FS Relationships
Learning Objectives
- Describe the components that comprise the balance sheet including assets, liabilities, equities and net assets
- Recognize the variances between a for profit and not-for-profit balance sheet and what it tells stakeholders
- Identify the balance sheet equation
- Describe how the balance sheet and statement of activities tie to the income statement and statement of operations
- Differentiate the components of revenue in for-profits and contributions and revenue in not for profits
- Identify varying types of income statements and statement of operations
- Recognize the types of expenditures and classifications that can occur in each entity
- Recognize the concepts of how the income statement ties to and flows through to the balance sheet or statement of activities
- Identify the critical importance of the cash flow statement and its information related to cash flow inputs and outputs of the organization
- Identify what the cash flow statement tells the company
- Recognize how the cash flow statement links to the balance sheet and income statements
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Lynn Fountain
Lynn Fountain has over 38 years of experience spanning public accounting, corporate accounting and consulting. 20 years of her experience has been working in the areas of internal and external auditing and risk management. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Lynn has held two Chief Audit Executive (CAE) positions for international companies. In one of her roles as CAE, she assisted in the investigation of a multi-million-dollar fraud scheme perpetrated by a vendor that spanned 7 years and implicated 20 employees. The fraud was formally investigation by the FBI and resulted in 5 indictments estimating a $13M fraud loss.
Ms. Fountain is currently engaged in her own consulting and training practice. She is a highly sought-after trainer and international speaker. In addition, Ms. Fountain has assisted numerous companies with enterprise risk management frameworks, internal audit processes and financial accounting. She also serves as a discussion leader for the AICPA for numerous classes finance, accounting and risk management topics.
Ms. Fountain is the author of three separate technical books. Her first book released in 2015 by the Institute of Internal Auditors Foundation is entitled “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”. Her second book “Leading the Internal Audit Function” was released in October 2015 by Taylor & Francis Publications. This book serves as the initial launch for a series of leading practice internal audit and information technology publications. Her third book “Ethics and the Internal Auditor’s Dilemma” was released in December 2016.
Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CPA, CGMA, CRMA credentials.