More Introduction to Financial Accounting

Start Date: 07/05/2020

Course Type: Common Course

Course Link: https://www.coursera.org/learn/wharton-financial-accounting

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About Course

The course builds on my Introduction to Financial Accounting course, which you should complete first. In this course, you will learn how to read, understand, and analyze most of the information provided by companies in their financial statements. These skills will help you make more informed decisions using financial information.

Course Syllabus

Now that we have a solid grasp of the foundations from the Introduction to Financial Accounting course, we are going to work our way around the Balance Sheet to discuss various types of Assets, Liabilities, and Stockholders' Equity (along with their associated Revenues and Expenses) in more detail. We kick off with Accounts Receivable and the problem that some customers that buy goods on credit will not actually pay us. We will look at the computation, disclosure, and analysis of such "Bad Debts". We will also briefly discuss other Accounts Receivable issues such as Factoring and Securitization. Then, we will move on to Inventory. We will discuss how Inventory accounting differs between retail and manufacturing firms. We will see how companies figure out the cost of the inventory they sold, which requires assumptions about cost flows. This discussion will lead us into covering one of the most infamous accounting topics: LIFO.

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Course Introduction

More Introduction to Financial Accounting This course provides an introduction to the core concepts of financial accounting. More specifically, it provides an overview of the key concepts of financial accounting, including financial statement analysis, financial income statement preparation, and cash flows statement preparation. Drawing on a wealth of academic literature, you will learn more about the role of finance and accounting for forecasting and for controlling costs. You will also learn about financial statement analysis and other types of analysis of financial statements. In addition, you will learn how to identify and analyze the components of financial statements, and how to utilize a framework to analyze these components, in order to construct a comprehensive view of a company’s financial condition and to construct a more complete budget and operating forecast. Upon successful completion of this course, you will be able to: 1. Explain the purpose of financial accounting 2. Describe the key concepts of financial accounting 3. Use a framework to analyze the financial statements 4. Construct a comprehensive view of a company’s financial condition 5. Establish a budget and operating forecast for the company 6. Establish a series of financial transactions that relate to the company’s financial condition 7. Summarize the key financial components of a financial statement 8.

Course Tag

Financial Accounting Financial Statement Accounting Generally Accepted Accounting Principles Accounting Terminology

Related Wiki Topic

Article Example
Financial accounting Financial accountancy is governed by both local and international accounting standards. Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions and rules that accountants follow in recording and summarizing and in the preparation of financial statements. On the other hand, International Financial Reporting Standards (IFRS) is a set of passionable accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board (IASB). With IFRS becoming more widespread on the international scene, "consistency" in financial reporting has become more prevalent between global organizations.
Financial accounting While financial accounting is used to prepare accounting information for people outside the organization or not involved in the day-to-day running of the company, managerial accounting provides accounting information to help managers make decisions to manage the business.
Financial accounting The accounting equation (Assets = Liabilities + Owners' Equity) and financial statements are the main topics of financial accounting.
Financial accounting Financial accounting and financial reporting are often used as synonyms.
Financial accounting Financial accounting is the preparation of financial statements that can be consumed by the public and the relevant stakeholders using either Historical Cost Accounting (HCA) or Constant Purchasing Power Accounting (CPPA). When producing financial statements, they must comply to the following:
Financial accounting Financial accounting (or financial accountancy) is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. This involves the preparation of financial statements available for public consumption. Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes.
Financial accounting Financial accounting serves the following purposes:
Financial accounting Financial accountants produce financial statements based on the accounting standards in a given jurisdiction. These standards may be the Generally Accepted Accounting Principles of a respective country, which are typically issued by a national standard setter, or International Financial Reporting Standards (IFRS), which are issued by the International Accounting Standards Board (IASB).
Accounting Accounting can be divided into several fields including financial accounting, management accounting, external auditing, and tax accounting. Accounting information systems are designed to support accounting functions and related activities. Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers; and management accounting focuses on the measurement, analysis and reporting of information for internal use by management. The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.
Comparison of management accounting and financial accounting The differences between management accounting and financial accounting include:
Financial Accounting Standards Board The FASB's mission is "to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports."
Accounting Accounting is facilitated by such as standard-setters, accounting firms and professional bodies. Financial statements are usually audited by accounting firms, and are prepared in accordance with generally accepted accounting principles (GAAP). GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United States and the Financial Reporting Council in the United Kingdom. As of 2012, "all major economies" have plans to converge towards or adopt the International Financial Reporting Standards (IFRS).
Comparison of management accounting and financial accounting There is no time span for producing managerial accounting statements but financial accounting statements are generally required to be produced for the period of 12 previous months.
Accounting Accounting has several subfields or subject areas, including financial accounting, management accounting, auditing, taxation and accounting information systems.
Management accounting Given the above, one view of the progression of the accounting and finance career path is that financial accounting is a stepping stone to management accounting. Consistent with the notion of value creation, management accountants help drive the success of the business while strict financial accounting is more of a compliance and historical endeavor.
Accounting Organizations in individual countries may issue accounting standards unique to the countries. For example, in the United States the Financial Accounting Standards Board (FASB) issues the Statements of Financial Accounting Standards, which form the basis of US GAAP, and in the United Kingdom the Financial Reporting Council (FRC) sets accounting standards. However, as of 2012 "all major economies" have plans to converge towards or adopt the IFRS.
Financial Accounting Standards Board FASB and the International Accounting Standard Board are working closely together to develop a common Conceptual Framework. The goal is develop standards that are objectives-based, internally consistent, and internationally converged. Currently Statement of Financial Accounting Concepts No. 8 “Conceptual Framework for Financial Reporting” is being used in the United States. The Conceptual Framework include: measurement attributes used to measure and report economic transactions, events, and arrangements in financial statements; and accounting principles and assumptions that guide recognition, derecognition, and disclosure, as well as the classification and presentation of information in financial statements.
Comparison of management accounting and financial accounting Managerial Accounting provides top management with reports that are future-oriented, while Financial Accounting provides reports based on historical information.
Financial accounting THE STABLE MEASURING UNIT ASSUMPTION One of the basic principles in accounting is “The Measuring Unit principle: The unit of measure in accounting shall be the base money unit of the most relevant currency. This principle also assumes the unit of measure is stable; that is, changes in its general purchasing power are not considered sufficiently important to require adjustments to the basic financial statements.”
Financial accounting The trial balance, which is usually prepared using the double-entry accounting system, forms the basis for preparing the financial statements. All the figures in the trial balance are rearranged to prepare a profit & loss statement and balance sheet. Accounting standards determine the format for these accounts (SSAP, FRS, IFRS). Financial statements display the income and expenditure for the company and a summary of the assets, liabilities, and shareholders' or owners' equity of the company on the date to which the accounts were prepared.