Reesby Academy · Finance & Accounting Basics
Reading Financial Statements
Read profit and loss, balance sheet and cash flow statements.
About this course
Financial statements can look intimidating, but they tell a clear story about how a business performs and what it owns and owes. This course introduces the profit and loss statement, the balance sheet and the cash flow statement, and shows which questions to ask when reviewing results. The content is general information only and is not financial or accounting advice.
What you will be able to do
- You'll be able to describe the purpose of the profit and loss statement
- You'll be able to interpret the main items on a balance sheet
- You'll be able to explain how cash flow differs from profit
- You'll be able to identify questions to ask when reviewing financial results
Course outline
- Why Statements Matter10 min · Lesson notes, example, action task · 2-question quizFinancial statements summarise what a business has earned, what it owns and owes, and how cash moved through it. Understanding them helps managers and team members make better decisions, even without an accounting background.
- The Profit and Loss Statement10 min · Lesson notes, example, action task · 2-question quizThe profit and loss statement, also called the income statement, shows revenue, costs and the resulting profit or loss over a period. It is the first place most people look when judging performance.
- The Balance Sheet10 min · Lesson notes, example, action task · 2-question quizThe balance sheet shows what a business owns, what it owes and the owners' remaining stake on a particular date. It is built on the simple idea that assets equal liabilities plus equity.
- The Cash Flow Statement10 min · Lesson notes, example, action task · 2-question quizThe cash flow statement shows how cash came into and went out of the business over a period. Because profit and cash can differ, this statement is essential for understanding whether a business can pay its bills.
- Asking Good Questions10 min · Lesson notes, example, action task · 2-question quizThe most valuable skill when reading financial statements is asking the right questions. Good questions turn numbers into understanding and help you spot issues early.
- Tools you'll need5 min · Lesson notes, example, action task · 2-question quizYou can read and analyse financial statements with tools you already have. Accounting software and spreadsheets help you track and compare figures over time.
- Careers & next steps5 min · Lesson notes, example, action task · 2-question quizReading financial statements supports many finance, management and business roles. This lesson outlines where the skill leads and how to check what it may be worth.
- Final quiz and certificate10 questions, pass mark 8 of 10. Pass to get your Reesby Academy certificate with a verification link.