Financial Accounting Masterclass for MBA, Engineers, Non-fin

Master the purpose of accounting by tracking performance over years through the profit and loss statement, balance sheet, cash flow statement, and assets and liabilities across four chapters.

Analyze how income, expenses, and savings determine loan eligibility; compute net worth from assets minus liabilities. Compare personal and business finances via the profit and loss statement and balance sheet.

Learn how the profit and loss statement, or PNL, captures sales, operating and non-operating income, expenses, and profit for a period, with accrual accounting insights.

Explore the balance sheet, showing a company’s financial position on a day, balancing assets with liabilities and owners’ equity across formats, including cash, inventories, PP&E, intangibles, and retained earnings.

Master financial accounting by recording daily business transactions with accrual accounting. Prepare the profit and loss statement, balance sheet, and cash flow statement, and learn to analyze financial statements.

Formulate simple business assumptions for a single-owner startup: 100% ownership, no salary, 800 cups daily at 1000 rupees, no rent, and 11 days of transactions.

Begin with a clean slate by recording cash as share capital and updating assets. Recognize expenses when consumed and reflect owner's equity, including retained profits and dividends on balance sheet.

Explain how cash decreases on equipment purchase, why fixed assets are capitalized and depreciated over years, and how raw materials become inventory expensed on consumption.

Learn to record revenue, cost of goods sold, and depreciation from selling tea, calculate gross profit, and apply revenue recognition when rights and obligations transfer.

Examine revenue recognition on delivery, where a thousand is recorded though cash received is five hundred, creating receivables and balance sheet impacts, and assess gross, net margins and depreciation.

Learn revenue recognition and the matching principle through day seven and eight of financial accounting, including cash advances, delivery timing, expenses, and their impact on assets and liabilities.

Examine how cash, advances, and supplier credit affect revenue recognition and balance sheet changes from day nine to eleven, including losses from unused raw material and depreciation.

Consolidate accounts and perform financial analysis by aggregating daily data into a consolidated statement. Reverse engineer the PNL and balance sheet to assess profit, margins, and cash changes.

Compute sales, cost of goods sold, gross profit, gross profit margin, net profit, and net profit margin. Explain why gross profit is positive but net profit shows losses from costs.

Learn the cash flow statement, including operating, investing, and financing activities, to analyze a company's cash position and cash generation. Explore practical prep and interpretation using a real company example.

Analyze the cash flow of a tea stall by separating cash and credit sales, interpreting accrual profit versus cash profit, and outlining a cash flow statement: operating, investing, financing.

Explore how profit and loss statements, balance sheets, and cash flow statements capture a company's income, financial position, and cash movements, plus 14 accounting concepts and a practical exercise.

Explore three additional transactions and their effects on cash flow and balance sheet. See how investing excess cash, securing a bank loan, and payroll shape operating, investing, and financing activities.