Course Outline

The Why & How of Numbers

  • Demystifying the most commonly used finance/accounting terms including
  • Are there any financial regulations that govern the world of accounting & finance?
  • Different methods of accounting i.e. Cash vs Accrual basis
  • Introduction to the Financial Statements containing
  • Income Statement
  • Balance Sheet 
  • Cashflow Statement
  • Statement of Changes in Equity
  • The relationship and flow of data among all Financial Statements

Revenue & Expenditure

  • What is included in Revenue and what is excluded from it
  • Cash vs Revenue; why these are not the same
  • Different types of expenditure used in recording financial transactions
  • What is Cost of Goods Sold – Why this is important and how it affects the profitability

Income Statement

  • A detailed review of Income Statement and its line items
  • Understanding the key terminology used in the Income Statement
  • What are different types of profits i.e. Gross Profit, Operating Profit, Net Profit
  • What are EBIT and EBITDA and its significance
  • What are the extraordinary items and how they are viewed while analyzing the Income Statement

Balance Sheet

  • Key terms used in Balance Sheet i.e. Assets, Liabilities and Equity
  • Understanding the nature of Assets and their classification in Current and Non-Current assets
  • What are intangible assets and how we record them in the balance sheet
  • Understanding Depreciation & Amortization
  • How to classify the Current & Non-current liabilities
  • What is included in Equity, Retained Earnings, and Reserves?

Cashflow Statement

  • Understanding the structure of Cashflow Statement
  • What are the different classification of Cashflows according to the activities
  • Cashflow from Operating Activities
  • Cashflow from Investing Activities
  • Cashflow from Financing Activities
  • Establishing the link between cash flow from the above 3 activities and how the business can relate
    to the financing sources with the help of cash flows from different activities

Finance Statement Analysis – Ratio Analysis

  • What is the objective of Financial Analysis
  • What are different types of financial ratios?
  • How to calculate and interpret different types of financial ratios including 
  • Profitability ratios
  • Liquidity Ratios
  • Solvency Ratios
  • Investor Ratios 
  • Are ratios half the picture?
  • How to use ratios to analyze a company’s financial health

Introduction to Budgeting

  • How can financial budgets play a vital role in managing the business?
  • What is the budget cycle?
  • Long run budget vs short run budgets
  • Different budgeting methodologies including static budget, flexible budget, zero-based budgets etc.

Investment Appraisal & Project Evaluation Techniques

  • Demystifying the Time Value of Money Concept
  • Using time value of money concept calculate the discounted cash flows
  • How to segregate between relevant and irrelevant cashflows when analyzing the new project
  • Introduction to various investment appraisal techniques including 
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Payback Method 
  • How to make project decision regarding accepting or rejecting a new project
 7 Hours

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