Introduction to Financial Accounting

4.7
3,330 ratings
801 reviews

Course 2 of 6 in the Business Foundations Specialization

Master the technical skills needed to analyze financial statements and disclosures for use in financial analysis, and learn how accounting standards and managerial incentives affect the financial reporting process. By the end of this course, you’ll be able to read the three most common financial statements: the income statement, balance sheet, and statement of cash flows. Then you can apply these skills to a real-world business challenge as part of the Wharton Business Foundations Specialization.
Globe

Curso 100 % en línea

Comienza de inmediato y aprende a tu propio ritmo.
Clock

Aprox. 16 horas para completar

Sugerido: 4 weeks of study, 5-6 hours/week
Comment Dots

English

Subtítulos: English, Japanese, Chinese (Simplified)

Habilidades que obtendrás

AccountingFinancial StatementFinancial AccountingBalance Sheet
Globe

Curso 100 % en línea

Comienza de inmediato y aprende a tu propio ritmo.
Clock

Aprox. 16 horas para completar

Sugerido: 4 weeks of study, 5-6 hours/week
Comment Dots

English

Subtítulos: English, Japanese, Chinese (Simplified)

Syllabus - What you will learn from this course

1

Section
Clock
4 hours to complete

Week 1: Introduction and Balance Sheet

To learn a foreign language like Accounting, you need quite a bit of practice in the basic foundations (grammar, syntax, idioms, etc.). This material is absolutely essential for being able to read and to understand books written in the language (in our case, financial statements.). This week, we will starting building these foundations. We will start with an overview of financial reporting. What types of reports are required? Who makes the rules? Who enforces the rules? Then, we will cover the balance sheet equation and define/discuss Assets, Liabilities, and Stockholders' Equity. We will introduce debit-credit bookkeeping and do lots of practice in translating transactions into debits and credits. Finally, we will introduce a case of a start-up company to provide you insights into all of the steps necessary to go from recording the first transactions of a new business all the way through its first set of financial statements....
Reading
9 videos (Total 128 min), 7 readings, 2 quizzes
Video9 videos
1.1.2: Financial Reporting Example12m
1.2.1: Balance Sheet Equation12m
1.2.2: Assets, Liabilities, and Stockholders' Equity19m
1.3.1: Debit and Credit Bookkeeping I13m
1.3.2: Debit and Credit Bookkeeping II16m
1.4.1: Relic Spotter Case, Part 116m
1.4.2: Relic Spotter Case, Part 215m
1.5: 3M Company: Tour of an Annual Report10m
Reading7 readings
Syllabus10m
Frequently Asked Questions10m
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
Quiz2 practice exercises
Learning check-in2m
Homework #120m

2

Section
Clock
3 hours to complete

Week 2: Accrual Accounting and the Income Statement

We will start with a discussion of Accrual Accounting and how it affects the recognition of the Income Statement accounts: Revenues and Expenses. Then, we will cover adjusting entries, which are needed to prepare our internal books for the upcoming financial statements. Finally, we will discuss closing entries and the preparation of the Balance Sheet and Income Statement. At each stage, we will continue to work on the case of our start-up company. If you are not sick and tired of journal entries by the end of this week, then I have not done my job! ...
Reading
8 videos (Total 110 min), 6 readings, 1 quiz
Video8 videos
2.2: Relic Spotter Case, Part 312m
2.3.1: Adjusting Entries I15m
2.3.2: Adjusting Entries II14m
2.4.1: Relic Spotter Case, Part 4a11m
2.4.2: Relic Spotter Case, Part 4b9m
2.5: Financial Statements and Closing Entries16m
2.6: 3M Company: Income Statement and Balance Sheet9m
Reading6 readings
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
Quiz1 practice exercises
Homework #220m

3

Section
Clock
3 hours to complete

Week 3: Cash Flows

Cash is King! We will start with the classification of cash flows into operating, investing, and financing activities. Then, we will work on preparing and analyzing the Statement of Cash Flows. We will wrap up the case on the start-up company by preparing and analyzing its Statement of Cash Flows. Finally, we will discuss the differences between Earnings, Cash from Operations, EBITDA, and Free Cash Flow....
Reading
7 videos (Total 115 min), 4 readings, 1 quiz
Video7 videos
3.1.2: Relic Spotter Case, Part 516m
3.2.1: Statement of Cash Flows14m
3.2.2: Relic Spotter Case, Part 617m
3.3.1: More SCF Topics and EBITDA17m
3.3.2: Cash Flow vs. EBITDA Examples21m
3.4: 3M Company: Cash Flows13m
Reading4 readings
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
Quiz1 practice exercises
Homework #320m

4

Section
Clock
2 hours to complete

Week 4: Ratio Analysis and Final Exam

We will have our final exam this week. Because of the exam, I will cover Ratio Analysis, which will not involve any "new" material. While we will define and discuss a number of ratios, they will all basically involve dividing one accounting number by another. But, the analysis of what those ratios mean will involve a deep understanding of Balance Sheet and Income Statement accounts. Thus, the Ratio Analysis videos will help provide a nice review of the material, which will help you prepare for the exam. However, there will be no questions about ratio analysis on the exam. The only thing left to do after this exam is to impress your family, friends, and co-workers with your vast knowledge of Financial Accounting!...
Reading
5 videos (Total 73 min), 3 readings, 2 quizzes
Video5 videos
4.2: Plainview Technology Case, Part 116m
4.3: Plainview Technology Case, Part 219m
4.4: Plainview Technology Case, Part 310m
4.5: 3M Company: Ratios5m
Reading3 readings
PDF files for videos10m
PDF files for videos10m
PDF files for videos10m
Quiz2 practice exercises
Final Exam, Part 124m
Final Exam, Part 216m
4.7
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48%

started a new career after completing these courses
Briefcase

83%

got a tangible career benefit from this course

Top Reviews

By MMFeb 4th 2016

I took Brian Bushee's course and found him to be one of the BEST INSTRUCTORS I'VE EVER HAD IN MY ENTIRE LIFE. If you've had trouble with accounting courses in the past, HE IS THE INSTRUCTOR FOR YOU!!!

By BAFeb 4th 2018

great course simple to understand and very entertaining. i really like the idea of the virtual students they add a nice touch to the course and the instructions and provide good questions and answers

Instructor

Avatar

Brian J Bushee

The Geoffrey T. Boisi Professor

About University of Pennsylvania

The University of Pennsylvania (commonly referred to as Penn) is a private university, located in Philadelphia, Pennsylvania, United States. A member of the Ivy League, Penn is the fourth-oldest institution of higher education in the United States, and considers itself to be the first university in the United States with both undergraduate and graduate studies. ...

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