Description:

This course helps a non-financial manager make sense of the terms and concepts that are used in managing the financial aspects of a business. It explains basic financial structure and discusses the financial information you must have to run a business. You will learn how to read financial reports and understand the purpose and limitations of each. You will also get tools and methods to give you a complete picture of your financial position.

Strategy 1: UNDERSTAND Financial Structure
Tip: Look at the big picture.

• Identify assets.
• Identify liabilities.
• Identify equity.

Tip: Know the elements of financial change.

• Recognize revenues.

Competencies

1. Understand financial structure.
   • Look at the big picture.
   • Know the elements of financial change.
2. Apply reporting principles.
   • Know how balance sheets can help.
   • Understand income statements.
   • Plan with the cash flow statement.
   • Interpret a statement of retained earnings.
3. Manage the financial position.
   • Complete the picture.
   • Plan for cash flows.
   • Know the costs they can control.
   • Compute the return of investment