The Preparing Financial Statements course, which is comprised of 12 videos, demonstrates the process of preparing a complete set of financial statements, including discussions of the basic accounting equation, journal entries, ledgers, and contra accounts (e.g., accumulated depreciation and treasury stock). The last two videos address the differences between accruals and cash flows, and the items that reconcile net income on the income statement with net cash from operating activities in the operating section of the statement of cash flows.

Course 2 Learning Objectives

• State the basic accounting equation and explain how it relates to the financial statements.
• Apply the basic accounting equation to transactions that lead to a simple balance sheet.
• Apply the basic accounting equation to transactions that lead to a complete set of financial statements.
• Describe the structure and role of journal entries and ledgers.
• Use journal entries and ledger accounts to prepare a simple balance sheet.
• Use journal entries and ledgers accounts to prepare a complete set of financial statements.
• Explain how closing entries transition the financial statements from one period to the next.
• Define contra accounts and the role they play in the financial statements.
• Define treasury stock and describe where it can be found on the financial statements.
• Demonstrate how the sale of non-inventory assets affects the financial statements.
• Discuss and illustrate the difference between the accrual-basis and cash basis of accounting.
• Demonstrate using several examples of how net income on the income statement can be reconciled with net cash from operating activities on the statement of cash flows.

Course Components

1. PRATTedu Resources
2. PRATTedu Program Structure
3. Videos 1 – 12, each followed by knowledge check (KC) questions
4. Assessment Quiz (must score 70%)

CPE Requirements

1. The assessment Quiz must be completed satisfactorily no later than one year after enrollment, at which time your access to the website will expire.
2. A 70% minimum score on Assessment Quiz is required for satisfactory completion and to receive a certificate.

Course Navigation

Main Course Page Navigation (Current Page)

The main course page for each course consists of 6 sections: (1) Course description; (2) Learning objectives; (3) Course components; (4) CPE requirements; (5) Course navigation; and (6) the master course navigator, which allows you to quickly jump to the various lessons that make up the course. The course structure and resources, the course videos, and the final assessment quiz.

Master Course Navigation

Simply complete the lessons in order. At the bottom of each lesson, are two buttons: Previous Lesson or Next Lesson. We also include excerpts in the buttons so you can quickly identify the content in each direction. You can always go back to the beginning of the course (course intro page) by clicking the “back to Course 1 – Introduction to Financial Statements link. Note: At the bottom of each completed lesson (right above the previous/next buttons) it will state “Complete Lesson” make sure you click it before moving on.

MAKE SURE YOU GET YOUR CERTIFICATE! Please read below:

You must mark each page of our courses as complete for our system to register for completion of a course and generate a certificate. The Structure and Resources section is typically missed by many users, simply scroll to the bottom of each page and click the blue “Mark Complete” button and enjoy your course!

Course Information

Estimated Time: 3 Hours | 3.5 CPE Credits

Difficulty: Pre-Req: Course 1

Course Instructor

Author