Accounting Analysis I: The Role of Accounting as an Information System from Coursera

This course is the first course in a five-course Financial Reporting Specialization that covers the collection, processing, and communication of accounting information (via financial reports) about economic entities to interested parties (i.e., managers and external stakeholders such as stockholders and creditors). To gain the most relevant knowledge from these courses, learners should have taken a basic accounting course prior to this Specialization (which can be done through Coursera courses, such as any accounting course from the Fundamentals of Accounting Specialization: https://www.coursera.org/specializations/accounting-fundamentals). This Specialization focuses on accounting concepts, principles and theory with an emphasis on problems that arise in applying these concepts for external reporting purposes. Specific emphasis is placed on measurement of assets, liabilities, equities and income, as well as disclosure of additional information that may assist users understand the financial reports.

After a brief introduction to the course, we will spend time understanding the overall financial accounting structure and standards as well as review the fundamental accounting process used to prepare the financial statements, which will establish a framework for the study of the concepts in the remaining courses in the Financial Reporting Specialization. In this course, we will begin our review of key information included in the Balance Sheet and Income Statement and their related financial disclosures. The Statement of Cash Flows will be introduced briefly with more discussion to follow in later courses of the Specialization. Also, we will provide a cursory review of key concepts involving time value of money as we will finish this course with focus on revenue recognition, including discussion of the new revenue standard. We will review the general approach for recognizing revenue, special issues affecting revenue recognition including long-term construction contracts. In addition, we will discuss and review common ratios used in profitability analysis.

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What's inside

Syllabus

Course Orientation

You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.

Module 1: Financial Accounting Structure/Environment

We will learn the primary focus of financial accounting and learn about General Accepted Accounting Principles (GAAP) and their key assumptions, as well as compare them to International Financial Reporting Standards (IFRS).

Module 2: Accounting Process

We will use the accounting equation to complete the processing cycle. We will also learn the basic types of month-end adjusting entries. More importantly, we will describe the basic financial statements and how they relate to one another.

Module 3: The Balance Sheet and Financial Disclosures

We will learn the nuances of the Balance Sheet as well as various forms of disclosures associated with financial statements, including the Auditors' Report and MD&A. We will also review several key liquidity and financing ratios. Lastly, we will learn what's included in the operating segment reporting.

Module 4: Income Statement, Comprehensive Income, and Statement of Cash Flows

We will learn the key components of the Income Statement (e.g., EPS) and its impact on shareholders’ equity. We will also distinguish income from continuing operations vs discontinued operations. We will learn the key components of the Comprehensive Income and Statement of Cash Flows.

Module 5: Time Value of Money (TVOM)

We will learn some of the key concepts and variables related to time value of money.

Module 6: Revenue Recognition Part I

We will learn the key issues involving revenue recognition, including the five key steps. Next, we will determine when to recognize revenue, including involvement of multiple performance obligations and special issues related to steps 4 and 5. Lastly, we will discuss the presentation and disclosure requirements of revenue.

Module 7: Revenue Recognition Part II

We will understand the two methods of revenue recognition for long-term contracts, and work also with losses on these kind of contracts. In the end, we will review the convergence and differences between USGAAP and IFRS.

Module 8: Course Wrap-Up & Case Study

If you would like to earn an Honors badge on your certificate for this course, you must complete a peer reviewed case study that will serve as a refresher of all of the concepts that you have learned over the past seven modules. The case study will involve analysis of a publicly held Fortune 500 company in which you will analyze the Annual Report or 10K Report.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Covers core accounting concepts and principles, building a foundation for understanding financial reporting

Taught by Gerlando Lima, an experienced accounting professional with a strong industry reputation

Part of a comprehensive five-course Financial Reporting Specialization, offering a structured learning path

Emphasizes practical application of accounting concepts in external reporting

Introduces key accounting concepts such as revenue recognition and time value of money

Requires basic accounting knowledge as a prerequisite

Reviews summary

Introductory accounting analysis: understanding finance

Students largely appreciate this course, finding it to be a great review tool with good learning experiences and interesting content. Learners note that videos can sometimes be lacking in detail and that it's easy to quickly pass the knowledge checks, but overall, students say that course content is very informative, and instructors provide good explanations and examples that are easy to understand. The high quality of instruction and the relevant and challenging topics covered make this course a popular one with students.

Content is well-organized and provides a thorough overview of accounting basics and GAAP.

"Execellant and simple to understand"

"it was helpful course ,benifit me and help me to review my knowledge and refresh my experiences"

"The pacing of the course was easy to follow and the overall content was very well explained. The questions were challenging and made the learning experience fulfilling."

The course offers a good amount of detail on accounting analysis topics.

"Comprehensive coverage of all the listed topics with real world scenarios and a hands on approach."

"Diverse and in-depth lesson materials on accounting analysis knowledge."

"I got the special factor from this course.Because I learnt the international report and reviewed all of the international students report.It is a big experience to grow up with my professional career."

Instructors, particularly Professor Davis, are knowledgeable and provide clear explanations with good examples.

"Good Professor, Special rate for white board explanations."

"The instructor does a nice job of providing an overview of the materials."

"I really enjoyed learning this course. The instrcutor Gregory Davis patiently explained basic accounting concepts in very systematized way."

The course provides valuable insights into accounting analysis, is relevant to learners' work, and can boost learners' careers.

"Topics in this course were immediately relevent and helpful in my everyday work. Looking forwardto Accounting Analysis II."

"Bundle of thanks to Coursera, the University, and the Teacher for the opportunity to help boost my career and learn Online."

Some students report that videos may sometimes lack detail.

"Videos can be more ellabortive."

"One issue was that the meaning of shortcuts where not on the slides and therefore searching in the videos was necessary."

Students found it easy to pass knowledge checks on the first attempt.

"I do wish that there were more example problems in the videos. So that when I get to the knowledge check, the instructor has already walked through how to calculate the answer."

"Another way for inprovement would be a reference on each slide or beginning of a slidedeck regarding a topic where to find this in the topic in the additional literature/book provided."

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 Accounting Analysis I: The Role of Accounting as an Information System with these activities:

Solve problems on the accounting cycle

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Practice applying the accounting cycle to various transactions to improve understanding and accuracy.

Browse courses on Accounting Cycle

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Review the steps of the accounting cycle
Apply the steps to different types of transactions

Interpret financial statements and their impact on users

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Develop the ability to analyze and interpret financial statements to understand their implications for stakeholders.

Browse courses on Financial Statements

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Review the different types of financial statements
Identify the key elements of each statement
Analyze the relationships between the statements
Evaluate the financial health and performance of a company

Peer tutoring in financial accounting concepts

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Strengthen your understanding and communication skills by helping others learn financial accounting concepts.

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Review the key concepts in financial accounting
Identify areas where you can provide support to peers
Develop a plan for tutoring sessions

Three other activities

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Learn about the latest financial accounting standards and regulations

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Stay up-to-date with the ever-changing landscape of financial accounting by exploring the latest standards and regulations.

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Research recent updates to GAAP or IFRS
Attend webinars or workshops on new standards
Review articles and publications from professional organizations

Create a financial model for a hypothetical company

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Develop analytical and problem-solving skills by creating a financial model that simulates a company's financial performance.

Browse courses on Financial Modeling

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Gather data on the company and industry
Build a financial model using Excel or other software
Test and validate the model
Use the model to perform scenario analysis

Volunteer with a non-profit organization to gain practical experience

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Apply your financial accounting knowledge and make a positive impact by volunteering with a non-profit organization.

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Identify a non-profit organization to volunteer with
Contact the organization and inquire about volunteer opportunities
Participate in tasks related to financial accounting, such as bookkeeping or financial reporting

Career center

Learners who complete Accounting Analysis I: The Role of Accounting as an Information System will develop knowledge and skills that may be useful to these careers:

Chief Financial Officer (CFO)

A Chief Financial Officer (CFO) oversees the financial operations of a company. They are responsible for financial planning, reporting, and analysis. This course may be useful as it provides a comprehensive overview of accounting and financial reporting.

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

Controller

A Controller is responsible for the day-to-day accounting operations of a company. They oversee the preparation of financial statements and ensure that the company complies with accounting standards. This course may be useful as it provides a comprehensive overview of accounting and financial reporting.

See salaries and explore the career path for Controller

Financial Manager

A Financial Manager oversees the financial operations of a company. They are responsible for financial planning, reporting, and analysis. This course may be useful as it provides a comprehensive overview of accounting and financial reporting.

See salaries and explore the career path for Financial Manager

Financial Analyst

A Financial Analyst researches and interprets financial data. They provide insights and recommendations to clients on investment decisions. This course may be useful as it provides a foundation in financial reporting and analysis.

See salaries and explore the career path for Financial Analyst

Forensic Accountant

A Forensic Accountant investigates financial fraud and misconduct. They analyze financial records and provide expert testimony in court. This course may be useful as it provides a foundation in accounting and financial reporting.

See salaries and explore the career path for Forensic Accountant

Management Accountant

A Management Accountant provides financial information to managers to help them make informed decisions. They analyze financial data and prepare reports on the company's financial performance. This course may be useful as it provides a foundation in accounting and financial reporting.

See salaries and explore the career path for Management Accountant

Investment Analyst

An Investment Analyst researches and interprets financial data. They provide insights and recommendations to clients on investment decisions. This course may be useful as it provides a foundation in financial reporting and analysis.

See salaries and explore the career path for Investment Analyst

Government Accountant

A Government Accountant manages the financial operations of a government agency. They are responsible for financial planning, reporting, and analysis. This course may be useful as it provides insight into the role of accounting in the public sector.

See salaries and explore the career path for Government Accountant

Risk Manager

A Risk Manager identifies and assesses risks that a company faces. They develop and implement strategies to mitigate these risks. This course may be useful as it provides insight into the role of accounting in risk management.

See salaries and explore the career path for Risk Manager

Compliance Manager

A Compliance Manager ensures that a company adheres to relevant laws and regulations. They develop and implement policies and procedures to ensure compliance. This course may be useful as it provides insight into the role of accounting in financial reporting and compliance.

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Accountant

An Accountant is responsible for examining and preparing financial records. They ensure that their company complies with tax laws and regulations. This course may be useful as it provides insight into the role of accounting in providing information to those interested in a company's financial health.

See salaries and explore the career path for Accountant

Budget Analyst

A Budget Analyst plans and manages an organization's budget. They forecast revenues and expenditures and recommend ways to optimize spending. This course may be useful as it provides insight into the role of accounting in financial planning and analysis.

See salaries and explore the career path for Budget Analyst

Tax Accountant

A Tax Accountant prepares and files tax returns for individuals and businesses. They advise clients on tax laws and regulations. This course may be useful as it provides a foundation in tax accounting.

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Auditor

An Auditor assesses the financial status of an organization. They check for accuracy and ensure that the company follows rules and regulations. This course may be useful as it provides a foundation in financial reporting and analysis.

See salaries and explore the career path for Auditor

Payroll Specialist

A Payroll Specialist is responsible for processing payroll for employees. They ensure that employees are paid accurately and on time. This course may be useful as it provides a foundation in payroll accounting.

See salaries and explore the career path for Payroll Specialist