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.

     

Duration

3.5 hours

 

Prerequisites

None

 

Delivery

Self-Directed Online

 

Who Will Benefit?

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

Program Level

Foundational

 

Pricing

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.

Methodology:

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.