Financial Accounting Fundamentals from Coursera

This course, developed at the Darden School of Business at the University of Virginia and taught by top-ranked faculty, will teach you the tools you'll need to understand the fundamentals of financial accounting. Concise videos, the financial records of a small business, and "your turn" activities guide you through the three most commonly used financial statements: the Balance Sheet, the Income Statement, and the Statement of Cash Flows. Beyond recording transactions, you'll learn how to prepare these financial statements, and read and analyze them to draw basic conclusions about a company's financial health.

By the end of this course, you will be able to:

- Use journal entries to record transactions

- Prepare and use t-accounts to summarize transactions recorded during an accounting period

- Describe the three most commonly used financial statements and how they fit together

- Prepare these financial statements based on transactions recorded during an accounting period

- Draw basic conclusions about a company's financial health

What's inside

Syllabus

Introduction to Financial Accounting, the Financial Statements, and the Balance Sheet

During this first week, we’ll learn about the context for financial accounting, including the informational role it plays for both internal and external audiences. We’ll explain accounting standards, which ensure financial information is conveyed clearly and effectively. Finally, we’ll describe the three primary financial statements as part of a recurring accounting process, called the accounting cycle, and then dive into one of those statements: the Balance Sheet (BS).

Introduction to Recording Transactions

After learning about the Balance Sheet, we’re ready to move on to using journal entries to record transactions, then t-accounts to summarize transactions recorded during an accounting period. We’ll apply those tools to record transactions for a fictional startup company, The Garden Spot, during its first year of operations (TGS Year 1). As we go along, we’ll also evaluate the effect of transactions on the balance sheet equation to ensure it remains balanced.

The Income Statement, Revenue and Expense Transactions, and Adjusting Entries

Now that we’ve learned the fundamentals of recording transactions, we’re ready to dive into another financial statement: the Income Statement (IS). After learning about the Income Statement, we’ll record revenue and expense transactions, and summarize these transactions in a special account. Finally, we'll record adjusting entries in accordance with accrual accounting, prior to the preparation of the financial statements.

The Statement of Cash Flows, Financial Statement Preparation

After learning about the Income Statement, revenue and expense transactions, and adjusting entries, we’re ready to move on to preparing our end-of-period financial statements. We’ll prepare the Income Statement and Balance Sheet based on the transactions that have been recorded. Then, we’ll dive into the Statement of Cash Flows (SCF) and learn how to prepare that financial statement. Finally, we’ll briefly discuss closing entries, since we've been preparing them as we've been going along!

More Transactions, Analysis of Financial Statements, and an Annual Report

During this last week, we’ll walk through the second year of operations for our fictional startup company, The Garden Spot (TGS Year 2), for additional practice recording transactions and preparing our end-of-period financial statements. Then, we’ll do some analysis of The Garden Spot’s financial statements. Finally, we’ll take a look at PepsiCo’s Annual Report as an example of reporting for a publicly traded U.S. company.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Develops the key concepts of financial accounting, including financial statements, balance sheet, and transactions, which are crucial for understanding financial health

Taught by Luann J. Lynch, a top-ranked faculty member at the Darden School of Business, ensuring the credibility and quality of the course material

Provides hands-on practice through various activities, including recording transactions, preparing financial statements, and analyzing financial data, which enhances comprehension and retention

Uses a combination of concise videos, financial records, and interactive exercises to cater to different learning styles and engage learners effectively

Covers essential financial accounting concepts and their applications, providing a strong foundation for professionals in finance, accounting, and business

Requires no prior knowledge of accounting, making it accessible to learners from diverse backgrounds

Reviews summary

Fundamental insights in financial accounting

learners say this well-received course provides a strong foundation in the basics of financial accounting. According to students, the course covers essential topics like the accounting cycle, financial statements, and their interrelationships. Professor Luann Lynch brings clarity and humor to the subject, making it accessible to learners with varying backgrounds. Engaging assignments, challenging quizzes, and a comprehensive case study reinforce key concepts, ensuring a deeper understanding. The course has helped learners develop critical skills in reading and analyzing financial statements, enhancing their overall business acumen. Its relevance to practical scenarios and its focus on foundational principles make it highly recommended for those seeking a solid grounding in financial accounting.

While the course material is challenging, the quizzes and assignments are designed to help learners master the concepts.

" However I am a little bit of a slow learner and wish there was more extensive practices and opportunities for that."

"The only thing that bothered me a bit was some of the test questions."

"The quizzes can be challenging but they make you think which is good."

The course includes practical exercises and case studies that help learners apply their knowledge to real-world situations.

"There is even some well-placed humour to make the experience entertaining."

"The Garden Spot case study helped me understand key concepts."

"This course gives us a good understanding of financial accounting."

The course is well-suited for individuals with little to no accounting background who want to develop a basic understanding of financial accounting.

"I had absolutely no experience in finances, and I have to say I never felt overwhelmed by this class."

"It covers a lot of information and by the end of the course you have a much better understanding of the topics than at the beginning."

"If you don’t have any experience with accounting, this is a perfect course."

The course provides a comprehensive overview of financial accounting principles, giving learners a solid understanding of the subject.

"For beginners to Accounting like myself, this course introduced the rules of Accounting, journal entries and their onward flow to the 3 important financial statements in a very easy-to-understand manner."

"This is a great course designed by Luann Lynch and the University of Virginia."

"I feel like I have mastered the basics because of the way in which the professor took the time to explain and the way in which the course was structured."

Professor Lynch's enthusiasm and clear explanations make the course enjoyable and easy to follow.

"The Professor is really excellent at explaining accounting concepts, and she's funny too in a nerdy way"

"Professor Lynch is one of the best teachers I have ever seen."

"Her instruction was very engaging and the quizzes were quite challenging."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Financial Accounting Fundamentals with these activities:

Review Financial Statement Analysis Concepts

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Enhance your knowledge of financial statement analysis concepts to maximize your learning in this course.

Browse courses on Financial Statement Analysis

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Review previous coursework or textbooks on financial statement analysis.
Solve practice problems or case studies to reinforce your understanding.

Review Basic Accounting Principles

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Refresh your understanding of basic accounting principles to build a solid foundation for this course.

Browse courses on Accounting Fundamentals

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Review textbooks or online resources on basic accounting.
Take practice quizzes or tests to assess your understanding.

Create a Course Study Guide

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Consolidate your learning by creating a comprehensive study guide that organizes key concepts, definitions, and formulas.

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Compile notes, assignments, quizzes, and exams.
Summarize key concepts and definitions.
Include practice problems and solutions.

One other activity

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Engage in Study or Discussion Groups

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Deepen your comprehension by collaborating with peers in study or discussion groups, exchanging ideas, and reinforcing concepts.

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Connect with classmates through online forums or discussion boards.
Organize regular virtual or in-person study sessions.
Prepare questions and actively participate in discussions.

Career center

Learners who complete Financial Accounting Fundamentals will develop knowledge and skills that may be useful to these careers:

Management Consultant

Management Consultants advise organizations on how to improve their performance. They analyze financial data and make recommendations on how to improve efficiency and profitability. This course will help you build a foundation in financial accounting, which is essential for Management Consultants. You will learn how to read and analyze financial statements, and how to use accounting principles to make sound business decisions.

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Financial Analyst

Financial Analysts research and evaluate financial information to make investment recommendations. This course will help you build a foundation in financial accounting, which is essential for Financial Analysts. You will learn how to read and analyze financial statements, and how to use accounting principles to identify undervalued and overvalued stocks.

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Investment Banker

Investment Bankers help companies raise capital and advise them on mergers and acquisitions. They analyze financial data and make recommendations on how to structure deals. This course will help you build a foundation in financial accounting, which is essential for Investment Bankers. You will learn how to read and analyze financial statements, and how to use accounting principles to value companies.

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Risk Manager

Risk Managers identify and assess risks to an organization. They analyze financial data and make recommendations on how to mitigate risks. This course will help you build a foundation in financial accounting, which is essential for Risk Managers. You will learn how to read and analyze financial statements, and how to use accounting principles to identify and assess risks.

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Financial Planner

Financial Planners help individuals and families plan for their financial future. They analyze financial data and make recommendations on how to save and invest money. This course will help you build a foundation in financial accounting, which is essential for Financial Planners. You will learn how to read and analyze financial statements, and how to use accounting principles to make sound financial decisions.

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Credit Analyst

Credit Analysts assess the creditworthiness of borrowers. They analyze financial data and make recommendations on whether to approve or deny loans. This course will help you build a foundation in financial accounting, which is essential for Credit Analysts. You will learn how to read and analyze financial statements, and how to use accounting principles to assess the financial health of borrowers.

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Auditor

Auditors examine and evaluate financial records to ensure accuracy and compliance with regulations. This course will help you build a foundation in financial accounting, which is essential for Auditors. You will learn how to read and analyze financial statements, and how to use accounting principles to identify and correct errors.

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Tax Accountant

Tax Accountants prepare and file tax returns for individuals and businesses. They analyze financial data and apply tax laws to minimize tax liability. This course will help you build a foundation in financial accounting, which is essential for Tax Accountants. You will learn how to read and analyze financial statements, and how to use accounting principles to comply with tax laws.

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Chief Financial Officer (CFO)

CFOs are responsible for the financial health of an organization. They oversee the accounting, budgeting, and financial reporting functions. This course will help you build a foundation in financial accounting, which is essential for CFOs. You will learn how to read and analyze financial statements, and how to use accounting principles to make sound financial decisions.

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Accountant

Accountants prepare and examine financial records. They analyze financial information and prepare reports that summarize the financial activities of a business. This course will help you build a foundation in financial accounting, which is essential for Accountants. You will learn how to read and analyze financial statements, and how to use accounting principles to make sound financial decisions.

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Budget Analyst

Budget Analysts develop and manage budgets for organizations. They analyze financial data and make recommendations on how to allocate resources. This course will help you build a foundation in financial accounting, which is essential for Budget Analysts. You will learn how to read and analyze financial statements, and how to use accounting principles to make sound financial decisions.

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Forensic Accountant

Forensic Accountants investigate financial crimes and fraud. They analyze financial data and provide expert testimony in court. This course will help you build a foundation in financial accounting, which is essential for Forensic Accountants. You will learn how to read and analyze financial statements, and how to use accounting principles to identify and investigate financial crimes.

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Controller

Controllers are responsible for the day-to-day accounting and financial reporting functions of an organization. They oversee the accounting staff and ensure that the organization's financial records are accurate and compliant with regulations. This course will help you build a foundation in financial accounting, which is essential for Controllers. You will learn how to read and analyze financial statements, and how to use accounting principles to manage the accounting function.

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Staff Accountant

Staff Accountants perform a variety of accounting tasks, such as recording transactions, preparing financial statements, and conducting audits. This course will help you build a foundation in financial accounting, which is essential for Staff Accountants. You will learn how to read and analyze financial statements, and how to use accounting principles to perform accounting tasks.

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Financial Administrator

Financial Administrators manage the day-to-day financial operations of an organization. They oversee the accounting, budgeting, and financial reporting functions. This course will help you build a foundation in financial accounting, which is essential for Financial Administrators. You will learn how to read and analyze financial statements, and how to use accounting principles to manage the financial affairs of an organization.

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