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Accounting and Ratio Analysis

Course Overview

Bankers need to analyze (not prepare) financial statements to assess a company's creditworthiness. RMA's Accounting and Ratio Analysis will prepare learners to know how to analyze financial statements and not just know about the process.



3.5 hours






Self-Directed Online


Who Will Benefit?

Bankers who need an introduction to accounting and ratio analysis will benefit from the course.

Program Level




Member: $299
Nonmember: $539


Learning Objectives

Upon completion of this course, participants will be able to:

  • Understand Generally Accepted Accounting Principles (GAAP).
  • Describe the general characteristics and format of the Income Statement and the Balance Sheet.
  • Explain the meaning of the accounting equation.
  • Describe the effect of simple business transactions on the accounting equation.
  • Describe examples of accrual accounting's revenue recognition and matching principles. 
  • Explain the difference between accrual and cash methods of accounting.
  • Identify and describe three major categories of expense typically included on the Income Statement.
  • Accurately calculate financial ratios that measure growth, profitability, liquidity, activity, leverage, and debt service coverage.
  • Interpret the financial ratios to identify borrowing strengths and weaknesses of a case study example.


Through this course, learners will analyze the financial statements of a small business. Along the way, learners will discover how the income statement and balance sheet relate to each other; follow the money invested, spent, and earned as it impacts the accounting equation; and explore the difference between cash-basis and accrual accounting. Finally, learners will conduct a “bottom line” analysis of the company to assess its continued ability to perform and repay bank debt.

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