Formal Financial Accounting from Coursera

This course builds upon what you learned in Financial Accounting: Foundations and Financial Accounting: Advanced Topics and introduces you to formal foundations of financial accounting. The main purpose of the course is to familiarize you with technical terms in financial accounting, such as debit, credit and T-account. While knowledge on technical aspects of financial accounting is not necessary to understand and interpret financial statements, this knowledge is critical to be able to understand advanced topics in accounting. Formal Financial Accounting is a prerequisite course for the University of Illinois' iMSA program and the terminology we will cover will be used throughout the courses in iMSA program.

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 a highly recognized master degree. 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 online master's in accounting program, refer to this link: https://www.coursera.org/university-programs/imsa

What's inside

Syllabus

Course Orientation

In this module, you will become familiar with the course, your instructor, your classmates, and your learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.

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Read about what's good

what should give you pause

and possible dealbreakers

Provides a solid foundation for learners with no or limited knowledge of formal financial accounting

Useful for learners seeking a deeper understanding of accounting concepts and terminology

Provides a comprehensive overview of formal financial accounting for assets, liabilities, and shareholders' equity

Instructed by Oktay Urcan, a renowned expert in financial accounting

Practical applications and examples help learners understand the concepts

Completion of the course may prepare learners for advanced accounting topics

Reviews summary

Technical accounting for imsa prep

According to learners, this course provides a solid foundation for understanding the formal mechanics of financial accounting, specifically focusing on technical terms like debit and credit and T-accounts. Many students highlight its importance as a prerequisite for the iMSA program, stating it prepares them well for subsequent advanced topics. While the course structure is generally seen as clear, some reviewers found certain sections on the accounting cycle or specific concepts challenging and requiring extra effort or resources. The comprehensive exercise is frequently mentioned as a valuable tool for applying the learned concepts. Overall, it's viewed as essential, though potentially demanding, for those pursuing the iMSA.

Focuses on core technical accounting terms.

"The course delivers on its promise to familiarize you with terms like debit, credit, and T-account."

"I finally feel like I grasp what debits and credits truly mean after this course."

"Learned the essential terminology needed for understanding how transactions are recorded formally."

"This module explains the technical aspects of financial accounting."

Organized modules cover topics sequentially.

"The course modules are well-structured and build upon each other logically."

"Pacing felt appropriate for covering these formal topics."

"Content delivery felt systematic, moving from basics to the full cycle."

Applies concepts through a full accounting cycle.

"The final comprehensive exercise really tied everything together for me."

"Working through the full accounting cycle in the last module was invaluable."

"Found the comprehensive problem very helpful for solidifying my understanding."

"The practical application at the end made a big difference."

Essential for the iMSA program curriculum.

"This course is absolutely crucial if you plan on entering the iMSA program."

"Highly recommended as a prerequisite, it makes later courses much more manageable."

"It serves its purpose perfectly as an iMSA prerequisite."

"Prepared me well for the accounting concepts covered in the full program."

Some concepts require significant effort to grasp.

"I found some of the explanations around the accounting cycle a bit difficult to follow."

"Certain topics were challenging and required reviewing the lectures multiple times."

"Might need supplemental resources if you struggle with the formal mechanics."

"Requires concentration to understand the debit/credit rules deeply."

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 Formal Financial Accounting with these activities:

Watch video tutorials on accounting topics

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Video tutorials can provide a clear and engaging way to learn accounting concepts. Take advantage of the many free resources available online.

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Identify the topics you want to learn more about
Find reputable sources for video tutorials
Take notes and summarize the key points of the tutorials

Write a brief explanation of the difference between a debit and a credit

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Debit and credit are fundamental concepts in accounting that can be confusing at first. By writing an explanation, you will reinforce your understanding of these terms.

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Define debit and credit
Explain how debits and credits are used to record transactions
Provide examples of debit and credit entries

Create a chart of accounts for a small business

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A chart of accounts is a fundamental part of an accounting system. By creating one, you'll not only be better equipped for this course, but you'll also build a foundation for success as an accountant.

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Identify the types of accounts needed for the business
Create a list of accounts and assign account numbers
Organize the accounts into a logical structure

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Create a simplified balance sheet for a small business

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Balance sheet is one of the core financial statements that summarize a company's financial health and serves as the foundation for more advanced accounting concepts.

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Identify and list the assets, liabilities, and shareholders' equity
Assign appropriate values to each account
Organize the accounts into a balance sheet format

Complete a series of practice problems on posting journal entries

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Posting journal entries is a critical skill for accountants. By completing practice problems, you will develop the accuracy and proficiency needed for success.

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Review the basics of journal entries
Analyze transactions and identify the accounts affected
Post the transactions to the appropriate T-accounts

Complete a series of exercises on financial ratios

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Financial ratios are widely used by investors and creditors to assess a company's financial health. By completing these exercises, you'll develop the skills needed to analyze financial statements.

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Review the different types of financial ratios
Calculate financial ratios using real-world company data
Interpret the results of your analysis

Develop a trial balance for a small business

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Trial balance is a key step in the accounting cycle that allows you to check the accuracy of your accounting records. By creating a trial balance, you will gain a deeper understanding of the accounting process.

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Identify the list of accounts and their balances
Prepare a trial balance worksheet
Calculate the total debits and credits

Prepare a bank reconciliation statement for a small business

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Bank reconciliations are an essential part of accounting. You will solidify your understanding of how to reconcile an entity's cash balance to its bank statement.

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Gather the necessary information, including the bank statement and the company's records
Identify and record any outstanding checks
Identify and record any deposits in transit

Career center

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

Accountant

Accountants analyze financial information, prepare financial reports, and provide financial advice. They need a strong understanding of financial accounting principles and practices, which this course can help provide. This course covers topics such as debits, credits, T-accounts, and the accounting cycle, which are all essential concepts for accountants to master. By taking this course, you can gain the knowledge and skills you need to succeed in an accounting career.

See salaries and explore the career path for Accountant

Auditor

Auditors examine financial records to ensure accuracy and compliance with regulations. They need a strong understanding of accounting principles and practices, as well as auditing procedures. This course can help auditors develop the knowledge and skills they need to succeed in their careers. The course covers topics such as financial statement analysis, internal controls, and audit procedures, which are all essential concepts for auditors to master. By taking this course, you can gain the knowledge and skills you need to succeed in an auditing career.

See salaries and explore the career path for Auditor

Financial Analyst

Financial analysts provide investment advice and make recommendations to clients. They need a strong understanding of financial accounting principles and practices, as well as financial analysis techniques. This course can help financial analysts develop the knowledge and skills they need to succeed in their careers. The course covers topics such as financial statement analysis, valuation techniques, and portfolio management, which are all essential concepts for financial analysts to master. By taking this course, you can gain the knowledge and skills you need to succeed in a financial analyst career.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment bankers provide financial advice and services to corporations and governments. They need a strong understanding of financial accounting principles and practices, as well as investment banking techniques. This course can help investment bankers develop the knowledge and skills they need to succeed in their careers. The course covers topics such as mergers and acquisitions, capital raising, and financial modeling, which are all essential concepts for investment bankers to master. By taking this course, you can gain the knowledge and skills you need to succeed in an investment banking career.

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Portfolio Manager

Portfolio managers manage investment portfolios for clients. They need a strong understanding of financial accounting principles and practices, as well as portfolio management techniques. This course can help portfolio managers develop the knowledge and skills they need to succeed in their careers. The course covers topics such as asset allocation, risk management, and performance evaluation, which are all essential concepts for portfolio managers to master. By taking this course, you can gain the knowledge and skills you need to succeed in a portfolio manager career.

See salaries and explore the career path for Portfolio Manager

Risk Manager

Risk managers identify, assess, and manage risks for organizations. They need a strong understanding of financial accounting principles and practices, as well as risk management techniques. This course can help risk managers develop the knowledge and skills they need to succeed in their careers. The course covers topics such as risk identification, risk assessment, and risk mitigation, which are all essential concepts for risk managers to master. By taking this course, you can gain the knowledge and skills you need to succeed in a risk manager career.

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Internal Auditor

Internal auditors evaluate the effectiveness of an organization's internal controls and financial reporting. They need a strong understanding of financial accounting principles and practices, as well as internal audit techniques. This course can help internal auditors develop the knowledge and skills they need to succeed in their careers. The course covers topics such as internal control evaluation, financial statement analysis, and audit procedures, which are all essential concepts for internal auditors to master. By taking this course, you can gain the knowledge and skills you need to succeed in an internal auditor career.

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Management Consultant

Management consultants provide advice and services to organizations on a variety of business issues. They need a strong understanding of financial accounting principles and practices, as well as business analysis techniques. This course can help management consultants develop the knowledge and skills they need to succeed in their careers. The course covers topics such as financial statement analysis, business process improvement, and organizational change, which are all essential concepts for management consultants to master. By taking this course, you can gain the knowledge and skills you need to succeed in a management consultant career.

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Financial Planner

Financial planners provide financial advice and services to individuals and families. They need a strong understanding of financial accounting principles and practices, as well as financial planning techniques. This course can help financial planners develop the knowledge and skills they need to succeed in their careers. The course covers topics such as financial goal setting, investment planning, and retirement planning, which are all essential concepts for financial planners to master. By taking this course, you can gain the knowledge and skills you need to succeed in a financial planner career.

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Tax Accountant

Tax accountants prepare and file tax returns for individuals and businesses. They need a strong understanding of tax laws and regulations, as well as accounting principles and practices. This course can help tax accountants develop the knowledge and skills they need to succeed in their careers. The course covers topics such as individual taxation, corporate taxation, and tax planning, which are all essential concepts for tax accountants to master. By taking this course, you can gain the knowledge and skills you need to succeed in a tax accountant career.

See salaries and explore the career path for Tax Accountant

Forensic Accountant

Forensic accountants investigate financial fraud and other financial crimes. They need a strong understanding of accounting principles and practices, as well as forensic accounting techniques. This course can help forensic accountants develop the knowledge and skills they need to succeed in their careers. The course covers topics such as fraud detection, financial statement analysis, and expert witness testimony, which are all essential concepts for forensic accountants to master. By taking this course, you can gain the knowledge and skills you need to succeed in a forensic accountant career.

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Actuary

Actuaries assess and manage financial risks for insurance companies, pension funds, and other financial institutions. They need a strong understanding of financial accounting principles and practices, as well as actuarial science techniques. This course can help actuaries develop the knowledge and skills they need to succeed in their careers. The course covers topics such as life insurance, health insurance, and pension plans, which are all essential concepts for actuaries to master. By taking this course, you can gain the knowledge and skills you need to succeed in an actuary career.

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Credit Analyst

Credit analysts assess the creditworthiness of borrowers and issue credit ratings. They need a strong understanding of financial accounting principles and practices, as well as credit analysis techniques. This course can help credit analysts develop the knowledge and skills they need to succeed in their careers. The course covers topics such as financial statement analysis, credit scoring, and loan underwriting, which are all essential concepts for credit analysts to master. By taking this course, you can gain the knowledge and skills you need to succeed in a credit analyst career.

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Financial Controller

Financial controllers oversee the financial operations of an organization. They need a strong understanding of financial accounting principles and practices, as well as financial management techniques. This course can help financial controllers develop the knowledge and skills they need to succeed in their careers. The course covers topics such as financial planning, budgeting, and cash flow management, which are all essential concepts for financial controllers to master. By taking this course, you can gain the knowledge and skills you need to succeed in a financial controller career.

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Chief Financial Officer

Chief financial officers (CFOs) are responsible for the financial performance of an organization. They need a strong understanding of financial accounting principles and practices, as well as financial management techniques. This course can help CFOs develop the knowledge and skills they need to succeed in their careers. The course covers topics such as strategic financial planning, capital budgeting, and mergers and acquisitions, which are all essential concepts for CFOs to master. By taking this course, you can gain the knowledge and skills you need to succeed in a CFO career.

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