Accounting: Principles of Financial Accounting

About this course: Financial Accounting is often called the language of business; it is the language that managers use to communicate the firm's financial and economic information to external parties such as shareholders and creditors. Nobody working in business can afford financial illiteracy. Whether you run your own business, work as a manager or are just starting your career, you want to understand financial information and be able to interact with accountants, controllers, and financial managers. You want to talk business! This course will provide you with the accounting language's essentials. Upon completion, you should be able to read and interpret financial statements for business diagnosis and decision-making. More importantly, you will possess the conceptual base to keep learning more sophisticated accounting and finance on your own. Do not forget that, as with any other language, becoming proficient with accounting requires constant practice.

Who is this class for: This course if primarily aimed at recent college graduates just beginning their career and anyone (managers, entrepreneurs, etc.) who needs to understand basic accounting concepts on the job.

Created by:  IESE Business School

• Taught by:  Marc Badia, Assistant Professor

  Accounting and Control

Basic Info Course 1 of 5 in the Foundations of Management Specialization Level Beginner Commitment 4 weeks of study, 2-4 hours/week Language English Hardware Req None How To Pass Pass all graded assignments to complete the course. User Ratings 4.8 stars Average User Rating 4.8See what learners said Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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IESE Business School For over fifty years, IESE, the graduate business school of the University of Navarra, has been at the forefront of management education, developing and inspiring business leaders who strive to make a deep, positive and lasting impact on the people, companies and society they serve.

Syllabus


WEEK 1


Course Overview & Week 1: Introduction to Accounting - The Balance Sheet



Welcome! Before you start today's videos, please have a look at the syllabus. In this first session, I'll give you an overview of what accounting is all about and why it's important to have a basic proficiency in this "language." In addition, I'll introduce one of the most important financial reports - the balance sheet - and a practical real-world case so you can put theory into practice. Objectives: To gain insight into the essence of accounting and become familiar with the balance sheet and its purpose.


10 videos, 7 readings expand

1. Reading: Course Overview & Syllabus
2. Reading: Reminder of Coursera's Honor Code
3. Reading: About Week 1
4. Reading: Transactions Week 1
5. Video: Introduction - Welcome to the Course
6. Video: 1. Accounting: The Language of Business
7. Video: 2. Practice Case: The Campus Bookstore I
8. Video: 3. Practice Case: The Campus Bookstore II
9. Video: 4. Accounting for our First Transactions
10. Video: 5. Accounting for Transactions
11. Video: 6. Explaining the Balance Sheet
12. Video: 7. Defining an Asset
13. Video: 8. Defining a Liability
14. Video: 9. Recap
15. Reading: Required Reading Week 1: "The Balance Sheet"
16. Reading: Required Reading Week 1: "Introduction to Financial Accounting"
17. Reading: Quiz 1 with Solutions

Graded: Quiz Week 1

WEEK 2


Week 2: The Income Statement



Now that you are familiar with the balance sheet, in week two we'll learn how to account for a variety of transactions. In addition, I'll introduce you to another key financial report: the income statement. Course objectives: To be able to recognize a broader range of transactions on the balance sheet and to become familiar with the income statement.


11 videos, 5 readings expand

1. Reading: About Week 2
2. Reading: Transactions Week 2
3. Video: 1. Introduction to Week 2
4. Video: 2. Recap of Week 1
5. Video: 3. Purchasing Inventory
6. Video: 4. Sales and Cost of Goods Sold
7. Video: 5. Selling, General and Administrative Expenses
8. Video: 6. Some Collections and Payments of Cash
9. Video: 7. Depreciation and Amortization
10. Video: 8. Interest from Bank Loan and Taxes
11. Video: 9. Preparing the Balance Sheet
12. Video: 10. Introducing the Income Statement
13. Video: 11. Recap of Week 2 and Conclusions
14. Reading: Required Reading Week 2: "The Income Statement"
15. Reading: Required Reading Week 2: "Introduction to Financial Accounting"
16. Reading: Quiz 2 with Solutions

Graded: Quiz Week 2

WEEK 3


Week 3: The Cash Flow Statement



Now that you have a good grasp of the balance sheet and income statement, I'll help you master how to recognize the transactions we went over in week two. I'll also introduce a third financial report - the cash flow statement - and discuss liquidity. Course objectives: To understand the difference between liquidity and profitability, become familiar with T-accounts and gain insight into the purpose of the cash flow report.


14 videos, 4 readings expand

1. Reading: About Week 3
2. Reading: Transactions Week 3
3. Video: 1. Introduction to Week 3
4. Video: 2. Recap of Week 2
5. Video: 3. T-Accounts and Journal Entries
6. Video: 4. Setting up T-Accounts for the Campus Bookstore
7. Video: 5. Sales, Cost of Goods Sold, Collections from Customers and Payment to Suppliers
8. Video: 6. Other Operating Costs
9. Video: 7. Transactions with Non-Current Assets
10. Video: 8. Bank Loans and Interest
11. Video: 9. Taxes, Closing Entries and Payments of Dividends
12. Video: 10. Preparing the Balance Sheet
13. Video: 11. Preparing the Income Statement
14. Video: 12. Introducing the Cash Flow Statement I
15. Video: 13. Introducing the Cash Flow Statement II
16. Video: 14. Recap of Week 3 and Conclusions
17. Reading: Required Reading Week 3: "The Statement of Cash Flows"
18. Reading: Quiz 3 with Solutions

Graded: Quiz Week 3

WEEK 4


Week 4: Accrual Accounting



By using accrual accounting we can measure performance when a financial transaction takes place, even if no cash has actually changed hands. In this final session, we'll discuss the difference between accrual and cash accounting and also read and interpret a real enterprise's financial statements. Course objectives: By the end of the session, you will be able to handle numerous transactions for the purposes of financial reporting, and understand the advantages of accrual accounting.


11 videos, 5 readings expand

1. Reading: About Week 4
2. Reading: Transactions Week 4
3. Video: 1. Introduction to Week 4
4. Video: 2. Recap of Week 3
5. Video: 3. Accrual accounting vs. cash accounting
6. Video: 4. Measuring performance with accrual accounting
7. Video: 5. A few examples: prepaid insurance, accrued interest and advances from customers
8. Video: 6. Performance evolution of the Campus Bookstore I
9. Video: 7. Performance evolution of the Campus Bookstore II
10. Video: 8. Reading and interpreting real financial statements I
11. Video: 9. Reading and interpreting real financial statements II
12. Video: 10. Advanced topics you can explore on your own
13. Video: 11. Conclusions
14. Reading: Quiz 4 Part I with Solutions
15. Reading: Quiz Week 4 Background Information for Reference
16. Reading: Recommended Reading

Graded: Quiz Week 4 - Part 1
Graded: Quiz Week 4 - Part 2