About this course: This course builds upon what you learned in Financial Accounting: Foundations and Financial Accounting: Advanced Topics and introduces you to formal foundations of financial accounting. The main purpose of the course is to familiarize you with technical terms in financial accounting, such as debit, credit and T-account. While knowledge on technical aspects of financial accounting is not necessary to understand and interpret financial statements, this knowledge is critical to be able to understand advanced topics in accounting. Formal Financial Accounting is a prerequisite course for the University of Illinois' iMSA program and the terminology we will cover will be used throughout the courses in iMSA program. The University of Illinois at Urbana-Champaign, consistently ranked as one of the nation's top three accounting programs, now offers a master’s in accounting at a very affordable tuition rate and is completely online. The iMSA is a full Master of Accountancy program and students graduate with a highly recognized master degree. Try an open course or two, then apply for admission into the credit-bearing version, as you may be eligible to take credit-bearing courses during the application process. If you are missing any prerequisites for the full degree, you can complete Coursera courses to demonstrate readiness and strengthen your application for the iMSA. For more information on this exciting online master's in accounting program, refer to this link: https://www.coursera.org/university-programs/imsa
Who is this class for: This class is designed for those of you who have basic knowledge about financial statements and main accounts. This class builds upon this initial background and introduces you to formal foundations of financial accounting. In addition, this class provides an in-depth exploration of formal relationships among accounts and how financial statements are constructed from accounts.
Created by: University of Illinois at Urbana-Champaign
Taught by: Oktay Urcan, Associate Professor of Accountancy
Department of Accountancy, College of Business
| Level | Intermediate |
| Commitment | 3-5 hours/week |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
Syllabus
WEEK 1
Course Orientation
In this module, you will become familiar with the course, your instructor, your classmates, and your learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.
1 video, 4 readings, 1 practice quiz
- Video: Welcome by Professor Urcan
- Reading: Syllabus
- Reading: About the Discussion Forums
- Practice Quiz: Orientation Quiz
- Reading: Update Your Profile
- Discussion Prompt: Get to Know Your Classmates
- Reading: Build a Learning Community with Social Media
Module 1: Introduction to Financial Accounting Terminology
Accounting is the language of business. Managers communicate results of operations within a firm through accounting to various financial information users including investors and creditors. The main purpose of this module is to familiarize you with technical terms in financial accounting such as debit, credit, and T-account.
4 videos, 1 reading, 3 practice quizzes
- Reading: Module 1 Overview
- Video: Lesson 1.0: Module 1 Introduction
- Video: Lesson 1.1: Transaction and Transaction Worksheet
- Practice Quiz: Lesson 1.1 Knowledge Check
- Video: Lesson 1.2: T-Accounts, Debit, and Credit
- Practice Quiz: Lesson 1.2 Knowledge Check
- Video: Lesson 1.3: Journal Entry, Ledger, Trial Balance
- Practice Quiz: Lesson 1.3 Knowledge Check
Graded: Module 1 Graded Quiz
WEEK 2
Module 2: Formal Financial Accounting for Assets
One of the major components of a balance sheet is assets. Accounts receivables, inventories, and plant, property, and equipment constitute a major part of the assets. Understanding accounting for these accounts will help you uncover how these accounts change over time, their valuation, and their usefulness in managerial decision making.
4 videos, 1 reading, 3 practice quizzes
- Reading: Module 2 Overview
- Video: Lesson 2.0: Module 2 Introduction
- Video: Lesson 2.1: Accounts Receivables
- Practice Quiz: Lesson 2.1 Knowledge Check
- Video: Lesson 2.2: Inventories
- Practice Quiz: Lesson 2.2 Knowledge Check
- Video: Lesson 2.3: Plant, Property, and Equipment (PPE)
- Practice Quiz: Lesson 2.3 Knowledge Check
Graded: Module 2 Graded Quiz
WEEK 3
Module 3: Formal Financial Accounting for Liabilities and Shareholders’ Equity
The major sources of financing for many firms are liabilities and equity. Firms routinely finance their operations through various liabilities including accounts payables, bank loans, and bonds. They also raise funds from their investors through IPOs and SEOs. Finally, retained earnings (earnings earned but not distributed to investors) constitute a significant source of financing. Accounting for liabilities and shareholders’ equity will help you understand how formal financial accounting for liabilities and shareholders’ equity accounts are conducted.
4 videos, 1 reading, 3 practice quizzes
- Reading: Module 3 Overview
- Video: Lesson 3.0: Module Introduction
- Video: Lesson 3.1: Short-Term Liabilities
- Practice Quiz: Lesson 3.1 Knowledge Check
- Video: Lesson 3.2: Long-Term Liabilities
- Practice Quiz: Lesson 3.2 Knowledge Check
- Video: Lesson 3.3: Shareholders’ Equity
- Practice Quiz: Lesson 3.3 Knowledge Check
Graded: Module 3 Graded Quiz
WEEK 4
Module 4: Applications of Formal Financial Accounting
The accounting cycle starts with financial transactions, and continues with journalizing these transactions and posting the journal entries on the ledger. At the end of the year, the trial balance is prepared. The final step is to prepare financial statements from trial balance numbers. This module will go over a comprehensive exercise, which will track the accounting cycle of a firm from its establishment until its fiscal year-end financial statements.
2 videos, 1 reading
- Reading: Module 4 Overview
- Video: Lesson 4.0: Module 4 Introduction
- Video: Module 4 Application Example
Graded: Module 4 Graded Quiz
FAQs
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University of Illinois at Urbana-Champaign
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Pricing
| Audit | Purchase Course | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Not available | Available |
| Receive a final grade | Not available | Available |
| Earn a shareable Course Certificate | Not available | Available |
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