- How business/financial transactions are transformed into financial statements
- Key components of financial statements
- Simple blocks ad key concepts used in creating statements
- Simple meaning and relevance of accrual basis accounting
- Simple meaning and relevance of finance and accounting
- Key components of ratios used in financial statement analysis:
o Comparison
o Trends
o Cash impact in all analysis - The five major categories of relevant rations:
o Profitability to measure gross and net profit
o Efficiency to measure productivity and utilization of resources
o Liquidity to measure how well financial obligation is being met
o Solvency to measure debt encumbrances
o Cash- the key business success measurement - The simple meaning of all ratio results and how to use them in making business decisions to improve profits and productivity
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