Financial Basics

Chapter 1

Financial Basics for Preschool Directors and Administrators

Goal: to understand basic financial statements and their use as well as common accounting terminology


Table of Contents 

  1. Introduction
  2. The Balance Sheet
  3. The Income Statement
  4. Alternatives


Learning Objectives

After completing this class, the student will be able to:

  • Identify basic financial statements.
  • Understand the purpose of each financial statement.
  • Identify and understand the elements of each financial statement.
  • Understand and use various accounting terms.
  • Be able to read and use financial statements to better manage your business.
  • Be able to communicate financial information to bankers, investors, insurance companies and others.



NOTE: This course may reflect state-specific regulations. No information in this course supersedes any state regulations you need to follow. You must consult your state’s regulations when developing policies and procedures. Regulations for all states are accessible on the National Database of Child Care Licensing Regulations. Click on the link provided to view regulations in your state.