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.

The University of Illinois at Urbana-Champaign, consistently ranked as one of the nation's top three accounting programs, now offers a master’s in accounting at a very affordable tuition rate and is completely online. The iMSA is a full Master of Accountancy program and students graduate with an MS that is highly recognized. Try an open course or two, then apply for admission into the credit-bearing version as you may be eligible to take credit-bearing courses during the application process. If you are missing any prerequisites for the full degree, you can complete Coursera courses to demonstrate readiness and strengthen your application for the iMSA. For more information on this exciting iMSA online program, refer to this link: https://www.coursera.org/degrees/imsa

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.

Traffic lights

Read about what's good

what should give you pause

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

Foundational accounting concepts and analysis

According to learners, this course provides a solid foundation for understanding the role of accounting as an information system. Students appreciate the clear explanations of fundamental concepts like GAAP and IFRS, the accounting process, and the components of key financial statements like the Balance Sheet and Income Statement. While the lectures are generally well-received, some note that the course moves at a brisk pace. The inclusion of practical assignments and a culminating case study analyzing a real company's 10K report are highlighted as particularly useful for reinforcing learning. Learners frequently mention that having a basic accounting prerequisite is strongly recommended, as the course does not start from absolute zero and can be quite challenging otherwise. Overall, it is seen as an excellent starting point for the Financial Reporting Specialization and for those considering the iMSA program.

Course moves at an appropriate, though sometimes fast, speed.

"The pace is good, covering a lot of material efficiently."

"Sometimes the topics are covered quite quickly."

"Found the modular structure helpful for managing the course load."

"Kept me engaged without feeling overly rushed."

Assignments reinforce theory with practice.

"The assignments, especially the final case study, were very practical."

"Applying concepts to a real company's 10K report was incredibly valuable."

"The quizzes helped me check my understanding of each module."

"Good balance between theoretical concepts and hands-on application."

Concepts are explained clearly by the instructor.

"The instructor explains complex topics like revenue recognition very clearly."

"I appreciated the clarity and depth of explanation on GAAP vs IFRS."

"Lectures were easy to follow and logically structured."

"Makes potentially dry material accessible and understandable."

Provides a strong base for financial reporting.

"This course provided me with a solid foundation in accounting analysis."

"An excellent first course for the Financial Reporting Specialization."

"I feel much more confident understanding basic financial statements after this."

"Sets up the subsequent courses very well."

Need basic accounting knowledge to succeed.

"This course is quite challenging if you don't have prior accounting experience."

"Strongly recommend taking a basic accounting course first, as they state."

"The pace assumes you know fundamental terms and concepts already."

"It's difficult to jump straight into this without any background."

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

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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.

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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

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

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.

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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

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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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.

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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.

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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

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.

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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.

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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.

See salaries and explore the career path for Tax Accountant