Introduction to Financial Accounting

Learn the fundamentals and building blocks of the accounting process
Free tutorial
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31,344 students
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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
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

Requirements

  • 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

Description

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.

Course content

4 sections67 lectures1h 9m total length
  • Introduction
    01:26
  • Downloadable Files
    00:01
  • Session Objectives
    00:27
  • The Three Key Financial Statements
    01:27
  • The Balance Sheet: Assets
    01:32
  • The Balance Sheet: Liabilities
    01:23
  • The Balance Sheet: Shareholders' Equity
    01:25
  • Balancing The Balance Sheet
    01:35
  • Recording Transactions
    00:53
  • Issuing Shares For 100 in Cash
    00:47
  • Taking Out a Four Year Bank Loan
    00:43
  • Buying a Property For 80
    00:43
  • Buying Inventory For 60
    00:40
  • Selling All Inventory For 90
    01:39
  • Paying Salaries of 20
    00:41
  • Paying Interest of 3
    00:42
  • Current Assets Quiz
    1 question
  • Defining Accounts Receivable and Payable
    01:24
  • Buying and Selling on Credit
    01:28
  • Valdero Inc. Exercise
    00:18
  • Balance Sheet Quiz
    1 question

Instructor

CEO at Corporate Finance Institute | 350,000+ students
Tim Vipond
  • 4.5 Instructor Rating
  • 14,548 Reviews
  • 100,479 Students
  • 3 Courses

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.