Accounting and Ratio Analysis
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.