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Key Financial Reports (Short Course)

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Types of Financial Statements - Free Course

Oxford Home Study Centre offers this free Level 1 short course for anyone who wants a clearer understanding of the main financial statements used to organise and interpret business financial information. You can study online at your own pace, with 20 recommended study hours and no formal entry requirements.

The course gives you a focused introduction to income statements, balance sheets, cash flow statements and retained earnings, while also explaining the difference between single-entry and double-entry accounting. If you would like to compare this course with other subjects or study levels, browse our full course catalogue or explore our wider Accounting and Finance courses.

If you are beginning with accounting and want to continue learning without a course fee, you can also compare our free online accounting courses. This page has a specific purpose: it introduces the main types of financial statements together, rather than concentrating on one report in isolation.

What Are the Main Types of Financial Statements?

Financial statements summarise different aspects of an organisation's financial position and performance. Each statement answers a different question. An income statement looks at income and expenses over a period, a balance sheet presents assets, liabilities and equity at a point in time, and a cash flow statement tracks movements of cash through operating, investing and financing activities.

This short course introduces these reports as connected parts of financial reporting. You will also look at retained earnings and the record-keeping principles that help accounting information flow into financial statements. The aim is to help you recognise what each statement is for, what kind of information it contains and how the statements relate to one another.

Who Is This Free Financial Statements Course For?

This course is open to all and is designed as introductory study. It may suit you if you are new to accounting, run or support a small business, work with financial information in a non-accounting role, or simply want to understand common financial reports before progressing to more detailed study.

You do not need previous accounting experience. Because the course is self-paced and delivered online, you can organise your study around other commitments and revisit topics as needed.

How This Course Differs from Our Balance Sheet Course

This course is designed to give you a broad overview of several financial statements and the record-keeping concepts that support them. The balance sheet course has a narrower purpose: it concentrates on one statement and goes further into the reasons for creating it, the classification of assets and liabilities, preparation and basic analysis.

If your goal is to understand the complete set of common financial reports at an introductory level, start here. If you already understand the wider reporting picture and want to focus specifically on the statement of financial position, the balance sheet course is the more targeted option.

Frequently Asked Questions

Is the Types of Financial Statements course really free?

Yes. You can enrol, access the course materials and complete the required learning without paying a course fee. Optional certification is separate and carries its own charge if you choose to order a certificate after successful completion.

What level is this course?

This is a Level 1 course with 20 recommended study hours. It is designed as introductory study and is open to learners without previous accounting experience.

Which financial statements are covered?

The course covers the income statement, balance sheet, cash flow statement and statement of retained earnings. It also introduces single-entry and double-entry accounting to show how financial records support reporting.

Is this the same as the OHSC balance sheet course?

No. This course introduces several types of financial statements. The balance sheet course focuses specifically on the statement of financial position, including its purpose, assets and liabilities, preparation and analysis.

Do I need accounting experience before I enrol?

No formal entry requirements are listed for this course. It is suitable for beginners who want to understand common financial reports before moving into more detailed accounting study.

Do I receive a certificate automatically?

No. Certification is optional and is not included automatically with free study. After successful completion, you can choose whether to purchase an available certificate option.

Continue Your Accounting Studies

When you are ready to build on this introduction, compare our wider Accounting and Finance course collection for additional short courses and more detailed programmes. If you prefer to continue studying without a course fee, our free accounting course collection brings together beginner-friendly options across key accounting topics.

What You Can Learn from This Course

By working through the course, you can build a clearer understanding of how the main financial statements differ and how they fit together. In particular, the course can help you:

distinguish between the main types of financial statements and their purposes;
recognise the basic information presented in an income statement, balance sheet and cash flow statement;
understand the role of retained earnings in financial reporting;
identify why reliable accounting records matter when statements are prepared; and
compare the basic logic of single-entry and double-entry accounting.

If you want a separate introduction to profit-and-loss reporting, our free P&L account course concentrates on profit and loss statements rather than the wider financial-reporting set covered here.

Free Study and Optional Certification

You can enrol on Key Financial Reports (Short Course), access the online learning materials and complete the course without paying a course fee. Certification is optional and available separately after successful completion.

You may choose to purchase:

QLS-endorsed Certificate of Achievement
CPD-accredited certificate issued by the CPD Standards Office as a record of continuing professional development

You may order either certificate individually or purchase both for the same completed course. Buying one does not require you to buy the other.

Each certificate has its own price, and the total may vary by certificate choice, course level, format and delivery option. View our current certificate options and prices.

Certification is entirely optional and is not required to access the materials or complete the course.

Course Content

Topics Covered in the Course

What You Will Study

The syllabus is organised around five core topics. Together, they provide a compact introduction to the principal financial statements and the accounting records behind them.

Topic 1 - The Income Statement

Learn the purpose of the income statement and the role it plays in summarising financial performance over a period. You will consider how revenue and expenses are brought together to show whether activities have produced a profit or loss.

Topic 2 - The Balance Sheet

Explore the structure and purpose of the balance sheet, also known as the statement of financial position. This topic introduces the relationship between assets, liabilities and equity and helps you understand what the statement can reveal about a business at a particular date.

If you want to study this report in greater depth, our separate free balance sheet course focuses specifically on its purpose, preparation, assets and liabilities, and basic analysis.

Topic 3 - The Cash Flow Statement

Examine how cash moves into and out of a business and why cash flow information is different from profit information. This topic helps you recognise the role of cash flow statements in understanding liquidity and the movement of funds.

Topic 4 - Statement of Retained Earnings

Study the purpose of retained earnings and how accumulated profits can change over time. You will see how retained earnings connect financial performance with the equity section of financial reporting.

Topic 5 - Single-Entry vs Double-Entry Accounting

Compare single-entry and double-entry approaches to recording transactions. The topic introduces why double-entry bookkeeping creates a more structured accounting record and how accurate records support the preparation of financial statements.

How It Works

Build your knowledge through clear and accessible online learning.

Complete the assignments and achieve the required marks.

Choose an optional certificate after completing the course.

Why Choose a Certificate?

An optional certificate provides a clear record of successful course completion. Add it to your learning portfolio and share it where relevant.

Completing the course and its assessments shows your commitment to developing subject knowledge through focused, independent learning.

Use your new knowledge to support further study, workplace development or personal goals. A certificate records completion but does not guarantee employment or professional status.