Level I - Language of Business

Target Audience

This workshop is for all beginning credit analysts and lenders. It may be appropriate as a refresher for more experienced analysts and lenders.

Level I
111		The Language of Business
121		Differences in Business Organizations
131		Financial Statement Quality

Course Objectives

	Provide a concise review of a) debits and credits in recording business transactions and b) the central role of the accounting equation;
	Apply the proper application of debit and credit entries to a series of business transactions in compiling a cash and accrual income statement for a company;
	Understand the reasons for differences in resulting cash and accrual profits and their implications for business risk;
	Trace the impact on reported profits, cash flow, and balance sheet amounts and composition from incorrect accounting entries;
	Review the meaning and application of critical accounting principles and the impact of their omission or misuse on reported profits and balance sheet amounts; and
	Understand the differences between accrual and cash revenue recognition and the resulting cash and accrual impact on business profits and cash flow.

6 CEUs

Course Materials

	Note on Accounting Fundamentals and Risk Assessment
	Note on Key Accounting Principles and Risk Assessment
	2001 Financial Statements for Information Access
	Exercise Set (downloaded from Shockproof! Training website)
	Online Review Quizzes
	Solution Set (downloaded from Shockproof! Training website)
	Access to the Shockproof! Training Resource Center
	Inclusion in the Shockproof! Training Discussion Forum
	Online Credit Skills Proficiency Exam

Upon Completion

Participants who successfully complete the workshop will be able to:

	Understand the use of debits and credits in recording business transactions and the central role of the accounting equation;
	Apply debit and credit entries to a series of business transactions in compiling a cash and accrual income statement for a company;
	Understand the reasons for differences in resulting cash and accrual profits and their implications for business risk;
	Trace the impact on reported profits, cash flow, and balance sheet amounts and composition from incorrect accounting entries;
	Understand the meaning and application of critical accounting principles and identify the impact of their omission or misuse on reported profits and balance sheet amounts; and
	Assess the differences between accrual and cash revenue recognition and the resulting cash and accrual impact on business profits and cash flow.