What is Financial Accounting? from Coursera

What's inside

Syllabus

Introduction to Financial Accounting

Welcome to the first module of the course! We will start our introduction to the field of financial accounting by discussing practical applications of accounting information. Additionally we will identify who uses accounting information, address ethical considerations relevant to accounting, and define the three main forms of business ownership.

The Accounting Equation & Financial Statements

In this module we are introduced to the accounting equation and the four basic financial statements. We will start by breaking down the components of the accounting equation: assets, liabilities, and equity. We will then take a look at three out of the four basic financial statements: the income statement, the retained earnings statement, and the balance sheet. In this module's activity we will introduce you to the sum function in Excel, which will be used in the remaining activities for this course.

The Accounting Cycle & Analyzing Transactions

In this module we introduce the first step in the accounting cycle: “Analyze Transactions”. By the end of this module you will be able to analyze and record service business transactions within the fundamental accounting equation. First, we will walk through examples of recording business transitions in the video lesson. Then you will complete an activity to practice recording transactions on your own.

Analyzing Transactions using the Debit & Credit Rules

In this module we will analyze and record service business transactions using the debit and credit rules. We will also cover the function of T accounts within the accounting cycle and how to calculate the balances of each account at the end of an accounting period. In this module's activity you will have the opportunity to practice recording transactions in T accounts on your own in Excel.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Develops foundational accounting skills, which are core skills for business professionals

Examines financial accounting, which is highly relevant to business and finance

Introduces the accounting equation, which is a fundamental concept in accounting

Explores the four major financial statements, which provide a comprehensive view of a company's financial performance

Covers ethical considerations in accounting, which are important for maintaining trust in the profession

Teaches the basics of recording business transactions, which is essential for accurate financial record-keeping

Reviews summary

Recommended course for new accountants

Learners say What is Financial Accounting? is an accessible introduction to elementary accounting principles. Students rave about the course's engaging assignments, especially its step-by-step exercises using Excel. They appreciate the patient and encouraging instructor who presents accounting concepts with a positive attitude. Several reviewers mention that this course is perfect for beginners or those who want to review the basics.

Practical knowledge of Excel in accounting is provided in a clear and concise way.

"Simple to understand, straightforward examples, and excel built into the course—a good way to start the specialization."

"Lessons broken down in easy to follow modules with examples of what being discussed."

"Really insightful in how it helps learners see the bigger picture and connections with the use of excel."

The patient and encouraging instructor presents material in an organized manner.

"I appreciate all the examples Professor Andrea provided quality visual examples that helped me understand the lessons."

"The Professor keeps her lectures, exercises, and assessments "tight". No extraneous remarks or "stories"."

Interactive exercises and exciting activities make learning enjoyable.

"The course made it seem it was easy to understand the fundamentals of financial accounting."

"The course was really interactive and interesting."

"This course was very insightful and engaging."

Ideal course for beginners with no prior accounting knowledge.

"Perfect for a beginner"

"Very helpful and to the point. covers most of the topics without lag and is easy to understand"

"This course was very fun and easy."

Some students have reported incorrect marking in quizzes, which can be frustrating.

"Good video instruction and examples but incorrect marking of quizzes that is not fixed a year after students complain."

"However, I was frustrated with the quizzes, almost all of which had errors and typos."

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 What is Financial Accounting? with these activities:

Attend Accounting Industry Webinars

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Participating in webinars provides insights into industry trends and connects you with professionals.

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Identify relevant accounting industry webinars.
Register and attend the webinars.
Actively listen and engage in Q&A sessions.
Connect with speakers and other attendees to expand your network.

Review Key Accounting Concepts

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Examining familiar accounting concepts can prepare learners to firmly grasp new materials covered in this course.

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Review your existing financial accounting notes or revisit textbooks.
Engage in discussions with classmates regarding the fundamental financial concepts.
Complete practice problems or review prior assignments related to the course topics.

Create an Accounting Terminology Glossary

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Building a glossary reinforces your understanding of key accounting terms and enables easy reference.

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Compile a list of unfamiliar or complex accounting terms encountered in the course materials.
Define each term accurately, using clear and concise language.
Organize the terms alphabetically or by category for easy retrieval.

Four other activities

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Discuss Accounting Principles with Peers

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Engaging with peers can provide diverse perspectives and deepen your understanding of accounting principles.

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Form study groups with classmates.
Discuss assigned readings or topics, sharing insights and challenging interpretations.
Collaborate on problem-solving exercises, leveraging collective knowledge to find solutions.

Practice Transaction Recording

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Regular practice in recording transactions will enhance your proficiency in capturing business events accurately.

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Set up a practice ledger in a spreadsheet or accounting software.
Simulate business transactions, ensuring proper recording in the ledger.
Prepare trial balances to verify the accuracy of your recordings.
Review your entries with a financial advisor or experienced accountant for feedback and guidance.

Practice Financial Statement Analysis

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Repetitive exercises in analyzing financial statements will enhance your precision in understanding their implications.

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Obtain practice sets of financial statements from various companies.
Analyze the statements, identifying key metrics and ratios.
Interpret the results of your analysis, drawing conclusions about the companies' financial health.
Compare your interpretations with industry benchmarks or analyst reports to assess accuracy.

Develop a Financial Analysis Report

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Creating a comprehensive financial analysis report demonstrates your ability to synthesize knowledge from the course.

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Select a company or industry to analyze.
Gather relevant financial data from sources such as annual reports or financial databases.
Perform financial analysis using appropriate metrics and techniques.
Write a report presenting your findings, conclusions, and recommendations.

Career center

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

Auditor

Auditors play an important role in ensuring the accuracy and integrity of financial reporting. They examine financial records, interview company personnel, and evaluate internal controls to ensure that companies are following accounting rules and regulations. This course will help you develop the skills and knowledge needed to become an Auditor, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to communicate audit findings effectively.

See salaries and explore the career path for Auditor

Investment Analyst

Investment Analysts research and recommend stocks, bonds, and other financial investments. This role is quite similar to that of a Financial Analyst, and the two roles often have overlap. Taking this course will prepare you for a career as an Investment Analyst, and help you build a foundation in accounting principles that will make the transition into this role easier.

See salaries and explore the career path for Investment Analyst

Financial Analyst

Financial Analysts pore over financial data to help companies make better business decisions. Many Financial Analysts pivot from careers as Accountants because of their existing skillset. Financial Analysts use many of the skills and concepts learned in this course, including analyzing financial information, using the accounting equation, and comprehending financial statements. Taking this course will help prepare you for a career as a Financial Analyst, and help you build a foundation in accounting principles that will make the transition into this role easier.

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Tax Accountant

Tax Accountants prepare tax returns and advise clients on tax matters. This course will help you develop the skills and knowledge needed to become a Tax Accountant, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to apply tax laws and regulations.

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Accountant

Accountants prepare and examine financial records to ensure their accuracy and compliance with tax laws and regulations. This course will help you develop the skills and knowledge needed to become an Accountant, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to prepare financial statements.

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Management Consultant

Management Consultants help organizations improve their performance by providing advice on strategy, operations, and technology. This course will help you develop the skills and knowledge needed to become a Management Consultant, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to communicate complex information effectively.

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Financial Planner

Financial Planners help individuals and families plan for their financial future. This course will help you develop the skills and knowledge needed to become a Financial Planner, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to recommend financial products and services.

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Risk Manager

Risk Managers identify and assess risks and develop strategies to mitigate them. This course will help you develop the skills and knowledge needed to become a Risk Manager, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to evaluate and manage risks.

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Compliance Officer

Compliance Officers ensure that companies comply with laws and regulations. This course will help you develop the skills and knowledge needed to become a Compliance Officer, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to interpret and apply laws and regulations.

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Budget Analyst

Budget Analysts prepare and analyze budgets for organizations. This course will help you develop the skills and knowledge needed to become a Budget Analyst, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to communicate complex information effectively.

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Credit Analyst

Credit Analysts assess the creditworthiness of borrowers. This course will help you develop the skills and knowledge needed to become a Credit Analyst, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to evaluate and manage risks.

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Actuary

Actuaries use mathematics and statistics to assess and manage risks. This course will help you develop the skills and knowledge needed to become an Actuary, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to apply mathematical and statistical techniques to risk assessment and management.

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Forensic Accountant

Forensic Accountants investigate financial fraud and other financial crimes. This course will help you develop the skills and knowledge needed to become a Forensic Accountant, including an understanding of financial accounting principles, the ability to analyze financial information, and the ability to investigate and report on financial crimes.

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Real Estate Agent

Real Estate Agents help individuals and families buy and sell real estate. This course may be useful in helping you understand the financial aspects of real estate transactions, including the accounting for real estate sales and the preparation of financial statements for real estate companies.

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Teacher

Teachers educate students at all levels, from elementary school to college. This course may be useful in helping you understand the financial aspects of education, including the accounting for educational institutions and the preparation of financial statements for schools.

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