Introduction to Financial Accounting

About this course: Master the technical skills needed to analyze financial statements and disclosures for use in financial analysis, and learn how accounting standards and managerial incentives affect the financial reporting process. By the end of this course, you’ll be able to read the three most common financial statements: the income statement, balance sheet, and statement of cash flows. Then you can apply these skills to a real-world business challenge as part of the Wharton Business Foundations Specialization.

Created by:  University of Pennsylvania

• Taught by:  Brian J Bushee, The Geoffrey T. Boisi Professor

  Accounting

Basic Info Course 2 of 6 in the Business Foundations Specialization Commitment 4 weeks of study, 5-6 hours/week Language English, Subtitles: Japanese, Chinese (Simplified) How To Pass Pass all graded assignments to complete the course. Travail en cours

Chaque cours fonctionne comme un manuel interactif en proposant des vidéos préenregistrées, des quiz et des projets.

Aide de la part de vos pairs

Connectez-vous à des milliers d'autres étudiants et débattez sur des idées, discutez le contenu du cours et obtenez de l'aide pour en maîtriser les concepts.

Certificats

Obtenez une reconnaissance officielle pour votre travail et partagez votre réussite avec vos amis, vos collègues et vos employeurs.

University of Pennsylvania The University of Pennsylvania (commonly referred to as Penn) is a private university, located in Philadelphia, Pennsylvania, United States. A member of the Ivy League, Penn is the fourth-oldest institution of higher education in the United States, and considers itself to be the first university in the United States with both undergraduate and graduate studies.

Syllabus


WEEK 1


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 starting 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.


9 videos, 7 readings, 1 practice quiz expand

1. Lecture: Syllabus
2. Lecture: Frequently Asked Questions
3. Video: 1.1.1: Financial Reporting Overview
4. Video: 1.1.2: Financial Reporting Example
5. Lecture: PDF files for videos
6. Video: 1.2.1: Balance Sheet Equation
7. Video: 1.2.2: Assets, Liabilities, and Stockholders' Equity
8. Lecture: PDF files for videos
9. Quiz pour s'exercer: Learning check-in
10. Video: 1.3.1: Debit and Credit Bookkeeping I
11. Video: 1.3.2: Debit and Credit Bookkeeping II
12. Lecture: PDF files for videos
13. Video: 1.4.1: Relic Spotter Case, Part 1
14. Video: 1.4.2: Relic Spotter Case, Part 2
15. Lecture: PDF files for videos
16. Video: 1.5: 3M Company: Tour of an Annual Report
17. Lecture: PDF files for videos

Graded: Homework #1

WEEK 2


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!


8 videos, 6 readings expand

1. Video: 2.1: Revenues and Expenses
2. Lecture: PDF files for videos
3. Video: 2.2: Relic Spotter Case, Part 3
4. Lecture: PDF files for videos
5. Video: 2.3.1: Adjusting Entries I
6. Video: 2.3.2: Adjusting Entries II
7. Lecture: PDF files for videos
8. Video: 2.4.1: Relic Spotter Case, Part 4a
9. Video: 2.4.2: Relic Spotter Case, Part 4b
10. Lecture: PDF files for videos
11. Video: 2.5: Financial Statements and Closing Entries
12. Lecture: PDF files for videos
13. Video: 2.6: 3M Company: Income Statement and Balance Sheet
14. Lecture: PDF files for videos

Graded: Homework #2

WEEK 3


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.


7 videos, 4 readings expand

1. Video: 3.1.1: Operating, Investing, and Financing Cash Flows
2. Video: 3.1.2: Relic Spotter Case, Part 5
3. Lecture: PDF files for videos
4. Video: 3.2.1: Statement of Cash Flows
5. Video: 3.2.2: Relic Spotter Case, Part 6
6. Lecture: PDF files for videos
7. Video: 3.3.1: SCF Topics and EBITDA
8. Video: 3.3.2: Cash Flow vs. EBITDA Examples
9. Lecture: PDF files for videos
10. Video: 3.4: 3M Company: Cash Flows
11. Lecture: PDF files for videos

Graded: Homework #3

WEEK 4


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!


5 videos, 3 readings expand

1. Video: 4.1: Overview of Ratio Analysis
2. Lecture: PDF files for videos
3. Video: 4.2: Plainview Technology Case, Part 1
4. Video: 4.3: Plainview Technology Case, Part 2
5. Video: 4.4: Plainview Technology Case, Part 3
6. Lecture: PDF files for videos
7. Video: 4.5: 3M Company: Ratios
8. Lecture: PDF files for videos

Graded: Final Exam, Part 1
Graded: Final Exam, Part 2