Introduction to Financial Accounting from Coursera

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Syllabus

Week 1: Introduction and Balance Sheet

To learn a foreign language like Accounting, you need quite a bit of practice in the basic foundations (grammar, syntax, idioms, etc.). This material is absolutely essential for being able to read and to understand books written in the language (in our case, financial statements.). This week, we will start building these foundations. We will start with an overview of financial reporting. What types of reports are required? Who makes the rules? Who enforces the rules? Then, we will cover the balance sheet equation and define/discuss Assets, Liabilities, and Stockholders' Equity. We will introduce debit-credit bookkeeping and do lots of practice in translating transactions into debits and credits. Finally, we will introduce a case of a start-up company to provide you insights into all of the steps necessary to go from recording the first transactions of a new business all the way through its first set of financial statements.

Week 2: Accrual Accounting and the Income Statement

We will start with a discussion of Accrual Accounting and how it affects the recognition of the Income Statement accounts: Revenues and Expenses. Then, we will cover adjusting entries, which are needed to prepare our internal books for the upcoming financial statements. Finally, we will discuss closing entries and the preparation of the Balance Sheet and Income Statement. At each stage, we will continue to work on the case of our start-up company. If you are not sick and tired of journal entries by the end of this week, then I have not done my job!

Week 3: Cash Flows

Cash is King! We will start with the classification of cash flows into operating, investing, and financing activities. Then, we will work on preparing and analyzing the Statement of Cash Flows. We will wrap up the case on the start-up company by preparing and analyzing its Statement of Cash Flows. Finally, we will discuss the differences between Earnings, Cash from Operations, EBITDA, and Free Cash Flow.

Week 4: Ratio Analysis and Final Exam

We will have our final exam this week. Because of the exam, I will cover Ratio Analysis, which will not involve any "new" material. While we will define and discuss a number of ratios, they will all basically involve dividing one accounting number by another. But, the analysis of what those ratios mean will involve a deep understanding of Balance Sheet and Income Statement accounts. Thus, the Ratio Analysis videos will help provide a nice review of the material, which will help you prepare for the exam. However, there will be no questions about ratio analysis on the exam. The only thing left to do after this exam is to impress your family, friends, and co-workers with your vast knowledge of Financial Accounting!

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Teaches essential accounting concepts necessary for understanding financial statements

Provides a strong foundation for individuals with no prior accounting knowledge

Taught by Brian J Bushee, a Professor of Accounting at the Wharton School

Students will be able to analyze financial statements for use in financial analysis

Instructs learners on how accounting standards and managerial incentives affect financial reporting

Reviews summary

Introduction to accounting made clear

Learners say Introduction to Financial Accounting is a fantastic course for beginners who want to learn about accounting. The professor, Brian Bushee, is an excellent teacher who explains concepts clearly and uses a variety of methods to keep learners engaged, including videos, examples, problems, and snarky cartoon students. The course includes high-quality study materials, challenging tests and homework assignments, and active participation in forums where learners can interact with the professor. Overall, learners highly recommend this course to anyone who wants to learn financial accounting.

Tests and homework assignments are challenging and help learners to develop a deep understanding of the material.

"Tests and home works are of a very high standard that checks your conceptual knowledge."

"The course was also pitched effectively as it felt challenging throughout, yet effort to understand the material paid off."

Learners can interact with the professor and other students in the active forum.

"There is active participation in the forums and Prof Bushee interacts a lot with the students in the forums."

The course includes a variety of high-quality materials to support learning.

"The course material was well prepared."

"The use of the animated virtual students was entertaining and helpful."

"Professor Bushee has clearly invested a significant amount of time developing the course, and it shows from the first video to the last."

Concepts are explained in a way that is easy to understand.

"He has a way of explaining things that drill right to heart of confusion for students and makes things perfectly clear using examples, problems, and snarky cartoon students that ask just the right question."

"As a novice to financial accounting, I was impressed with the way the Professor acknowledged difficult concepts and questions, in a way that had clearly been developed from teaching the course to classes over many years."

"The concepts are well explained."

Professor Bushee has a unique teaching style that makes learning accounting fun.

"The weekly videos were just hokey enough to be entertaining in a way that sort of hid all the math we were doing."

"I found myself looking forward to learning the next part of each video. He's really THAT GOOD!"

The course assumes learners have some prior knowledge of accounting, which can be a disadvantage for those who are completely new to the subject.

"This class specifies no prior knowledge required. This is clearly not the case."

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 Introduction to Financial Accounting with these activities:

Collect financial news and articles

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Stay informed about current events and trends in the financial world.

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Subscribe to financial news sources.
Regularly read and analyze financial articles.
Summarize and share key insights.

Join a study group and discuss course material

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Enhance your understanding by collaborating and discussing course concepts with peers.

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Find a study group or create your own.
Review course materials together.
Discuss and clarify concepts.
Share insights and perspectives.

Analyze and compare financial ratios

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Strengthen your understanding of financial ratios and their use in analysis.

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Identify relevant financial ratios.
Calculate and compare ratios for different companies.
Interpret the results and identify trends.

Three other activities

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Practice interpreting financial statements

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Develop your ability to analyze and interpret financial statements accurately.

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Find tutorials on financial statement interpretation.
Follow the steps to interpret sample financial statements.
Analyze the results of your interpretation.
Complete assignments and exercises.

Review the book 'Financial Accounting: Theory and Practice'

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Gain a comprehensive understanding of financial accounting concepts and practices.

View Financial and Managerial Accounting on Amazon

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Read and summarize key chapters.
Answer the end-of-chapter questions.
Discuss the book with peers or a tutor.

Develop a financial plan for a small business

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Apply your knowledge of financial analysis to create a practical financial plan.

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Research financial planning for small businesses.
Identify relevant financial metrics and data.
Develop a financial projection based on your analysis.
Present your plan to a mentor or advisor.

Career center

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

Chief Financial Officer (CFO)

CFOs are responsible for the overall financial management of a company. To be successful in this role, you need a strong understanding of accounting principles and practices, as well as financial management strategies. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of financial management responsibilities that a CFO has. This course will help you build a strong foundation in financial accounting, which is essential for success as a CFO.

See salaries and explore the career path for Chief Financial Officer (CFO)

Controller

Controllers are responsible for managing the financial operations of a company. To be successful in this role, you need a strong understanding of accounting principles and practices, as well as financial management strategies. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of financial management responsibilities that a Controller has. This course will help you build a strong foundation in financial accounting, which is essential for success as a Controller.

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Accountant

Accountants prepare and maintain financial records for businesses. To be successful in this role, you need a strong understanding of accounting principles and practices. This course will provide you with the skills you need to understand and analyze financial statements. You will learn how to read and interpret income statements, balance sheets, and cash flow statements. You will also learn how to use financial ratios to evaluate a company's performance. This course will help you build a strong foundation in financial accounting, which is essential for success as an Accountant.

See salaries and explore the career path for Accountant

Tax Accountant

Tax Accountants prepare and file tax returns for individuals and businesses. To be successful in this role, you need a strong understanding of accounting principles and practices, as well as tax laws and regulations. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of taxes that businesses and individuals are subject to. This course will help you build a strong foundation in financial accounting, which is essential for success as a Tax Accountant.

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Forensic Accountant

Forensic Accountants investigate financial crimes, such as fraud and embezzlement. To be successful in this role, you need a strong understanding of accounting principles and practices, as well as investigative techniques. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of financial crimes that can occur and how to investigate them. This course will help you build a strong foundation in financial accounting, which is essential for success as a Forensic Accountant.

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Auditor

Auditors examine the financial records of companies to ensure that they are accurate and compliant with regulations. To be successful in this role, you need a strong understanding of accounting principles and practices. This course will provide you with the skills you need to understand and analyze financial statements. You will learn how to read and interpret income statements, balance sheets, and cash flow statements. You will also learn how to use financial ratios to evaluate a company's performance. This course will help you build a strong foundation in financial accounting, which is essential for success as an Auditor.

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Budget Analyst

Budget Analysts help organizations plan and manage their finances. To be successful in this role, you need a strong understanding of accounting principles and practices. This course will provide you with the skills you need to understand and analyze financial statements. You will learn how to read and interpret income statements, balance sheets, and cash flow statements. You will also learn how to use financial ratios to evaluate a company's performance. This course will help you build a strong foundation in financial accounting, which is essential for success as a Budget Analyst.

See salaries and explore the career path for Budget Analyst

Management Consultant

Management Consultants help businesses improve their operations and performance. To be successful in this role, you need a strong understanding of business principles and practices, including accounting. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of management consulting services that are available. This course will help you build a strong foundation in financial accounting, which is essential for success as a Management Consultant.

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Business Analyst

Business Analysts help businesses improve their operations and performance. To be successful in this role, you need a strong understanding of business principles and practices, including accounting. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of business analysis services that are available. This course will help you build a strong foundation in financial accounting, which is essential for success as a Business Analyst.

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Financial Analyst

Financial Analysts use their understanding of financial statements to make recommendations on investments or business decisions. To succeed in this role, you need a strong foundation in accounting principles and practices. This course will provide you with the skills you need to understand and analyze financial statements. You will learn how to read and interpret income statements, balance sheets, and cash flow statements. You will also learn how to use financial ratios to evaluate a company's performance. This course will help you build a strong foundation in financial accounting, which is essential for success as a Financial Analyst.

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Financial Planner

Financial Planners help individuals and families plan and manage their finances. To be successful in this role, you need a strong understanding of accounting principles and practices, as well as financial planning strategies. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of financial planning services that are available. This course will help you build a strong foundation in financial accounting, which is essential for success as a Financial Planner.

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Loan Officer

Loan Officers evaluate and approve loan applications. To be successful in this role, you need a strong understanding of accounting principles and practices, as well as lending policies and procedures. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of loans that are available and how to evaluate a borrower's creditworthiness. This course will help you build a strong foundation in financial accounting, which is essential for success as a Loan Officer.

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Investment Analyst

As an Investment Analyst, you will be responsible for evaluating and recommending investments. To be successful in this role, you need a strong understanding of financial statements and how to analyze them. This course will provide you with the skills you need to do just that. You will learn how to read and analyze income statements, balance sheets, and cash flow statements. You will also learn how to use financial ratios to evaluate a company's performance. This course will help you build a strong foundation in financial accounting, which is essential for success as an Investment Analyst.

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Chief Operating Officer (COO)

COOs are responsible for the day-to-day operations of a company. To be successful in this role, you need a strong understanding of business principles and practices, including accounting. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of COO responsibilities. This course will help you build a strong foundation in financial accounting, which is essential for success as a COO.

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Chief Executive Officer (CEO)

CEOs are responsible for the overall operations of a company. To be successful in this role, you need a strong understanding of business principles and practices, including accounting. This course will provide you with the skills you need to understand and analyze financial statements. You will also learn about the different types of CEO responsibilities. This course will help you build a strong foundation in financial accounting, which is essential for success as a CEO.

See salaries and explore the career path for Chief Executive Officer (CEO)