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Financial Accounting Fundamentals

Luann J. Lynch

4.8

Based on 2,704 ratings

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Luann J. Lynch

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

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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).

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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

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Reviews summary

Foundational financial accounting concepts

Based on the detailed course description and syllabus, learners would likely say this course provides a solid foundation in financial accounting fundamentals. It appears designed to guide students through the three main financial statements—Balance Sheet, Income Statement, and Statement of Cash Flows—using concise videos and practical 'your turn' activities. Students are likely to find the use of a fictional startup (The Garden Spot) and a real-world example (PepsiCo) helpful for understanding how concepts apply. The course seems well-structured, following the accounting cycle from recording transactions to statement preparation and basic analysis. However, it likely focuses solely on core concepts, suggesting it may be too basic for those with prior accounting experience or needing advanced topics.

Organized approach following the accounting cycle.

"The syllabus lays out a logical progression through the material."

"Starting with the Balance Sheet and building up makes sense."

"Following the accounting cycle seems like a very structured way to learn."

"The weekly breakdown looks well-paced for a fundamentals course."

Uses examples to show concepts in practice.

"The use of 'The Garden Spot' seems like a good way to apply concepts step-by-step."

"Looking forward to seeing how a real company like PepsiCo reports its finances."

"Learning to prepare and analyze statements feels very practical."

"Applying the balance sheet equation helps solidify understanding."

Provides a strong basis in essential accounting.

"I anticipate this course will provide clear explanations of the core financial statements."

"Learning the fundamentals like journal entries and T-accounts seems well covered here."

"I expect to gain a solid understanding of how the financial statements fit together."

"This looks like a perfect place to start for someone new to accounting."

Requires careful attention due to topic complexity.

"Accounting can be tricky, I hope the concise videos make it manageable."

"I anticipate needing to review some sections multiple times to grasp them."

"Keeping the balance sheet balanced will likely require focus on detail."

"Mastering journal entries takes practice and concentration."

Doesn't cover advanced accounting topics.

"I expect this course will only cover the very basics, as the title suggests."

"Those with existing accounting knowledge might find this too introductory."

"It likely won't delve into complex areas or industry-specific standards."

"This feels like a starting point, not a comprehensive deep dive."

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:

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.

See salaries and explore the career path for Accountant

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.

See salaries and explore the career path for Auditor

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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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.

See salaries and explore the career path for Financial Analyst

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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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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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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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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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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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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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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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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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 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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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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Featured in The Course Notes

This course is mentioned in our blog, The Course Notes. Read one article that features Financial Accounting Fundamentals:

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Reading list

We've selected 11 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Financial Accounting Fundamentals.

Intermediate Accounting

Save

This textbook provides a comprehensive overview of the major topics covered in this course, including the balance sheet, income statement, and statement of cash flows. It also includes helpful examples and exercises to reinforce the concepts learned in the course.

Intermediate Accounting

Loose Leaf

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Intermediate Accounting

Hardcover

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Intermediate Accounting

Loose Leaf

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Intermediate Accounting IFRS

Paperback

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