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What is Financial Accounting?

Andrea Eliassen

Andrea Eliassen

Students are introduced to the field of financial accounting through defining the foundational activities, tools, and users of financial accounting. Students learn to use the accounting equation and are introduced to the four major financial statements. Additional topics include ethical considerations, recording business transactions, and the application of credit/debit rules.

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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.

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Read about what's good

what should give you pause

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

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Reviews summary

Foundational financial accounting for beginners

According to learners, 'What is Financial Accounting?' is a positive and highly effective introduction for those new to the field. Students frequently commend the instructor's ability to explain complex topics clearly and concisely, making foundational concepts like the accounting equation and financial statements easily digestible. The course's use of Excel activities is noted as a helpful tool for practical application. While it provides a solid grounding in core accounting principles, some students with prior knowledge found the content too basic and desired more in-depth coverage. Overall, it serves as an excellent stepping stone into financial accounting, particularly for those with zero prior experience.

Helpful for hands-on application and solidifying understanding.

"The use of Excel in activities was super helpful for practical application."

"The practical exercises in Excel were a great addition and helped solidify my learning."

"The Excel activities helped me tremendously in practicing what I learned, making the concepts stick better."

Perfect starting point for those with no prior accounting knowledge.

"This course was an excellent introduction to financial accounting... Highly recommended for beginners!"

"As someone looking to shift careers into finance, this course provided the perfect starting point."

"Highly recommend for complete beginners. I had zero accounting background and now I understand the basics..."

Provides a solid grounding in core financial accounting principles.

"A solid foundational course. It covers the basics of the accounting equation, financial statements, and debit/credit rules effectively."

"Good basic course for understanding accounting principles. I found the module on debit and credit rules especially well-explained..."

"It demystifies financial accounting concepts for the uninitiated. The accounting equation module was particularly helpful."

The instructor excels at demystifying complex accounting topics.

"The instructor explains complex topics in a very clear and concise manner, making it easy for someone with no prior knowledge to grasp the fundamentals."

"The video lessons are well-produced, and the activities reinforce learning."

"The instructor is very clear and provides good examples. I learned a lot about financial statements..."

Some found the pace manageable, others struggled with speed or dryness.

"While it covers the basics, I struggled with the rapid pace of some sections. I felt like I needed to rewatch many lectures..."

"It's an introductory course, and it delivers on that. However, I found some of the explanations a bit dry and theoretical."

"The instructor's pacing was just right, not too fast, not too slow."

Content may lack challenge for those with prior accounting exposure.

"If you have any prior experience with accounting, you might find it too basic. I was hoping for something a bit more challenging..."

"The course is okay. It gives a very high-level overview... I suppose it delivers on its 'What is...' promise."

"I recommend it for anyone needing an introduction, but don't expect to become an expert; it's just the 'what is'."

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.

Browse courses on Financial Accounting

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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.

Browse courses on Accounting Terminology

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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:

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.

See salaries and explore the career path for Financial Analyst

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

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.

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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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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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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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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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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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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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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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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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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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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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Reading list

We've selected six 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 What is Financial Accounting?.

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Wiley 2022 Interpretation and Application of IFRS...

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Provides the official pronouncements of the International Accounting Standards Board (IASB), which sets accounting standards for public companies in many countries outside of the United States.

Wiley 2022 Interpretation and Application of IFRS...

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Financial Accounting

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Provides advanced and in-depth coverage of financial accounting theory and analysis, including topics such as financial statement analysis, valuation, and disclosure.

Financial Accounting

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Introduction to Management Accounting

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Provides a comprehensive overview of financial accounting theory and practice, including topics such as financial statement analysis, valuation, and disclosure.

Introduction to Management Accounting

Introduction to Management Accounting

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Intermediate Accounting

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Provides a comprehensive overview of accounting principles and practices, including financial accounting, managerial accounting, and auditing.

Intermediate Accounting

Intermediate Accounting

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Intermediate Accounting

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Provides a comprehensive overview of accounting principles and practices, including financial accounting, managerial accounting, and auditing.

Intermediate Accounting

Intermediate Accounting

Intermediate Accounting

Intermediate Accounting IFRS

Intermediate Accounting, Volume 2

Problem Solving Survival Guide to accompany...

Intermediate Accounting: IFRS Edition

Intermediate Accounting: 2014 FASB Update

Intermediate Accounting

Intermediate Accounting, Volume 2

Intermediate Accounting, 18th Edition

Intermediate Accounting, 17th Edition

Intermediate Accounting, 16th Edition

Intermediate Accounting IFRS, 4th Edition

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Cover image

Accounting All-in-One For Dummies (+ Videos and...

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Provides an accessible introduction and overview of the fundamentals of financial accounting for a general audience.

Accounting All-in-One For Dummies (+ Videos and...

Accounting All-in-One For Dummies (+ Videos and...

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Level

Introductory

Via

Coursera

Institution

University of California, Irvine

Instructor

Andrea Eliassen

Language

English

Transcripts

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This course belongs to a collection called Introduction to Financial Accounting: The Accounting Cycle. It's comprised of three courses:

Completing the Accounting Cycle
What is Financial Accounting? (viewing)
Recording in Journals & Posting in Ledgers

Traffic lights

Read about what's good

what should give you pause

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

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