Since 1494 when Luca Pacioli, for the first time, described the Double Entry System, the world has never been the same. Ever since Accounting became the language of business. Therefore, like when you go to a foreign country the first thing you do is to learn their spoken language. Before you can deeply understand business you must understand how accounting works.
From this course you can expect to deeply understand basic accounting concepts such us:
About the Instructor:
Gennaro Cuofano matured international experience for over Ten years between Europe and US. After graduating from Law School, he worked for a while in the legal field. His passion for finance and international business brought him to become an International MBA, with concentration in Corporate Finance.
After completing his MBA in Italy, at Luiss Business School; he flew to California, where he completed the International MBA at University of San Diego, California. There, he had the chance to attend Corporate Finance courses held by Thomas Copeland, former head of the Corporate Finance Practice at McKinsey.
Since 1494 when Luca Pacioli, for the first time, described the Double Entry System, the world has never been the same. Ever since Accounting became the language of business. Therefore, like when you go to a foreign country the first thing you do is to learn their spoken language. Before you can deeply understand business you must understand how accounting works. The First crucial concepts in accounting are:
In the following lecture we are going to see those topics one by one.
The GAAP are the then commandments of Accounting:
The Accounting Equation is a crucial concept. Although it may sound as a strict mathematical concept, h it is not. Indeed the Accounting Equation tells you that Assets always equal Liability plus Equity. In other words, the business has two ways to acquire the asset, either liability or equity. Once you understand the accounting equation you will understand right away how the balance sheet works. In fact, the balance sheet is a clear display of it.
The Double-Entry system is the foundation of Accounting. After the Accounting Equation this is the second most important concept. Once you grasp the meaning of it the Accounting discipline will look way easier.
In Accounting we usually have five main accounts:
Those five main accounts will help us to build the main financial statements: Balance Sheet and Income Statement. Indeed, to build our Balance Sheet we need Asset, Liability and Equity. To build our Income Statement instead, we need Income and Expense.
Debit and Credit in Accounting work differently of how you may intuitively think. In fact, debit and credit are a set of rules to determine when cash will increase or decrease, according to the account in consideration.
The GL is a big book where all the transactions for a certain period a reported. It usually is more detailed compared to the other statements. In fact, the GL is the report from which are generated BS (Balance Sheet) and IS (Income Statement).
There is a main difference between the cash method and the accrual method. The first implies that revenue and expenses are recognized once money goes from one hand to the other. In other words, once you actually get the money from your customer the revenue will be recorder and once you give the money to your supplier the expense will be recognized. The Accrual method instead means that revenue and expenses will be recognized independently from money disbursement.
Follow the instructions to make your first journal entry.
Knowing how the Accounting department is structured is crucial for any professional. Either if you work in Sales, Marketing, Engineering and so on. Indeed, from the smallest to the largest expense will need to be approved by the Accounting Department. If you know the logic behind it the life within your company will be way smoother.
Have you ever wondered how do we go from a single transaction to generating an entire report for outside investor. In this lecture you are going to see how the entire internal accounting process works.
This lecture will give you an overview about the main financial statements, such as BS, IS and Cash Flow Statement.
The Income Statement tells us how profitable is an organization.
The Balance Sheet Shows the financial position of any company in any moment in time.
In this lecture you are going to find:
In this Quiz we are going to assess the level of understanding of the basic accounting concepts. If you completed the Quiz and scored 100% contact us through the Udemy system and we will be glad to send you a $10 Coupon for any of our courses!
You will learn all you have to know in regard to:
The Four-Week MBA community starts from the following idea:
"You can learn business effectively without having to spend thousand of dollars or sit for hours in a classroom to listen pointless fluffing. You can now learn everything you need to know about business and finance thanks to a simple language and an effective learning methodology!"
Gennaro matured international experience in the business world for over ten years across Europe and US. After graduating from Law School, he worked in the legal field. Afterward his passion for finance and international business brought him to become a business journalist, a private trader, an International MBA, a Financial Analyst and Assistant Controller. He tried all the professions in business and finance.
His experience can serve you to avoid the major pitfalls in your career. In addition, He truly believes that to master business and finance there is no need of useless technical jargon, or pompous language. Gennaro wants to share all the lessons learned throughout those years with you.