Financial Management & Digital Accounting · Intermediate level

Intermediate level · Module 1 of 6 · 15 guided hours

Balance Sheets and Cash Flow Statements

Prepare and read the balance sheet and statement of cash flows and see how the statements connect.

Learning objectives

  • Prepare a simple balance sheet
  • Prepare a statement of cash flows
  • Explain how the three statements link

Topics

  • balance sheet layout
  • current and non-current items
  • depreciation
  • statement of cash flows
  • linking the statements
  • reporting frameworks such as IFRS for SMEs

Lessons

  1. Lesson 1 The Balance Sheet

    Show what an organisation owns and owes at a point in time.

    current assetsnon-current assetscurrent liabilitiesequity

  2. Lesson 2 Depreciation and Accruals

    Match costs to the periods that use them.

    depreciationuseful lifeaccrualsprepayments

  3. Lesson 3 The Statement of Cash Flows

    Explain how cash changed through operating, investing and financing activities.

    operating activitiesinvesting activitiesfinancing activitiesreporting frameworks

Practical activity

Prepare a balance sheet and statement of cash flows for a small business from its trial balance and the Beginner income statement.

Expected outcomes

  • A full set of basic statements
  • Ability to read statements critically

Assessment

Statements checked for correct layout, consistency and balancing.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.