Introduction to Financial Accounting
- No prerequisite knowledge is required!
- Access to a PC or Mac
- An Internet connection, including the ability to play audio as courses include voice lectures
- Familiarity with basic Internet applications (email and web browser)
- A recent version of Microsoft Internet Explorer, Firefox, Chrome, Safari or another web browser
- An updated version of Microsoft Excel
Introduction to Accounting course overview:
This FREE Introduction to Accounting course will guide you through the fundamentals of the accounting process. We will explore the layout of the balance sheet, income statement, and cash flow statement; and demonstrate how to prepare financial statements from scratch. This fundamental accounting course is an essential building block required for performing financial modeling and other types of Wall Street financial analysis.
Constructing an income statement and balance sheet
In the first section of this free accounting course, we will explore the layout of the balance sheet and income statement, how transactions are recorded, and how to prepare a simple balance sheet and income statement. By the end of this section, you will have a solid understanding of how to construct a balance sheet and income statement.
- Explain the format of the income statement and balance sheet
- Define various financial statement terms (e.g. accounts receivable, prepayments, etc.)
- Record financial statement transactions (e.g. invoicing, raising equity, buying inventory, etc.)
- Prepare a simple income statement and balance sheet
Constructing a cash flow statement
In this second section of this Intro to Accounting course, we will explore the layout of the cash flow statement, explain the differences between the cash flow statement and the income statement, and prepare a cash flow statement from scratch. By the end of this section, you will have a solid understanding of how to construct a cash flow statement.
- Outline the format of the cash flow statement
- Explain the difference between profit and cash
- Prepare a simple cash flow statement using the balance sheet and income statement
More Accounting Course Details
This online accounting course incorporates a wide range of applied exercises and case studies. Sophisticated search and navigation tools allow you to go at your own pace while quizzes test what you’ve just learned.
The course also includes two PDF reference guides – an accounting factsheet and a financial statements glossary - that can be used while taking the course and downloaded to your computer for future reference. This is the ultimate accounting crash course to prep for Wall Street careers!
Who this course is for:
- This free online accounting course is designed for anyone who wants to review the fundamentals and building blocks of the accounting process.
- This class will also be useful for professionals who work in finance and want to review the concepts required for financial modeling and valuation in CFI's later courses.
- 00:01Downloadable Files
- 00:27Session Objectives
- 01:27The Three Key Financial Statements
- 01:32The Balance Sheet: Assets
- 01:23The Balance Sheet: Liabilities
- 01:25The Balance Sheet: Shareholders' Equity
- 01:35Balancing The Balance Sheet
- 00:53Recording Transactions
- 00:47Issuing Shares For 100 in Cash
- 00:43Taking Out a Four Year Bank Loan
- 00:43Buying a Property For 80
- 00:40Buying Inventory For 60
- 01:39Selling All Inventory For 90
- 00:41Paying Salaries of 20
- 00:42Paying Interest of 3
- 1 questionCurrent Assets Quiz
- 01:24Defining Accounts Receivable and Payable
- 01:28Buying and Selling on Credit
- 00:18Valdero Inc. Exercise
- 1 questionBalance Sheet Quiz
Tim is CEO of the Corporate Finance Institute® (CFI).
Corporate Finance Institute® (CFI) is a leading financial analyst certification company that provides career-focused financial modeling training. CFI’s courses have been delivered to tens of thousands of individuals at the top universities, investment banks, accounting firms and operating companies in the world. CFI is the official provider of the Financial Modeling & Valuation Analyst (FMVA)™ designation.
Tim has over 12 years of experience in capital markets across a wide range of transactions including mergers, acquisitions, divestitures, and capital raising totaling more than $3 billion.
His professional experience includes investment banking, investment management, corporate development, strategy and corporate finance.