Agenda

First Things First — Basic Accounting Principles for Non-Financial Professionals

• How to use general accounting terminology (GAAP) like a pro
• Become familiar with the underlying assumptions accountants use when preparing financial statements: historical cost, revenue recognition, matching principles, product costs, period costs, full disclosure, conservatism, materiality, and accrual accounting
• What the FASB, SEC, and AICPA are and how they govern accounting methods
• Two primary groups who are users of financial information — who they are, what they need to know
• The difference between managerial accounting and financial accounting

The Balance Sheet

• Discover what a balance sheet is, and what sets it apart from other financial statements
• Decipher how accounts are classified within the balance sheet
• "Current," "fixed," and "other" assets — what they are, how to assess their value to the company
• Use comparative analysis to analyze an organization's financial picture over a specified period of time

The Income Statement

• Identify the components of a classified income statement
• Understand why tax expense on the income statement is not always the same as taxes paid during the year
• Distinguish gains and losses categorized as "extraordinary" and how they are reflected on the income statement
• Cost of Goods Sold — learn what this means to an analysis of expenses
• Learn how to determine gross profit, compare to net profit, and draw conclusions about a company's operating environment

Understanding and Analyzing Financial Statements

• What financial statements can't tell you — review the limitations of financial analysis
• Using horizontal analysis to determine increases or decreases in income, profits, and expenses
• Using vertical analysis to compare individual income and expense amounts with net sales
• An introduction to ratio analysis
• Using ratios to determine profitability: proven formulas for net profit margin, net operating margin, return on assets, return on equity, earnings per share, and more!