In this section, we explore the main financial statements that companies prepare and their major line items—revenue, expenses, assets, liabilities, and owner's equity. Next, we cover the key concepts and practical applications of revenue and expense recognition. You will also learn the difference between historical and fair value accounting, how to account for income taxes, and more.

Here, we explain the difference between general and subsidiary ledgers, what T-accounts are, and how to use them in the context of double-entry bookkeeping. With this knowledge, you will take on the role of an accountant and learn to book basic accounting transactions.

In this practical section, you will work on a complete accounting case study. We illustrate how to book real-life business transactions. Then, based on these accounting records, we build the Income Statement and Balance Sheet from scratch. Finally, you will have the chance to practice everything you have learned so far in a Course Challenge we have prepared for you.

This entire section is dedicated to the Cash Flow Statement. We elaborate on the importance of the timing of cash transactions and the difference between cash generation and profitability. You will learn to calculate Net Cash Flow in Excel and build the Cash Flow Statement using the direct and indirect methods.

In this section, we switch gears and talk about the importance and practical applications of financial reporting. We go through the financial statements of a real company—Procter & Gamble (P&G)—and the major line items published in its Income Statement, Balance Sheet, and Cash Flow Statement.

In this core section, we introduce the concept of financial statement analysis and the major financial ratios used by investors. We examine the five key dimensions of ratio analysis (profitability, liquidity, activity, solvency, and valuation) and the difference between horizontal and vertical analysis. We have also included a practical case study in which you will calculate and interpret some multiples based on the financial statements of Procter and Gamble (P&G).

The last section of the Accounting and Financial Statement Analysis course comprises a complete financial statement analysis case study. We demonstrate how to download, read, and interpret the historical financial information of a real company—Tesla. We calculate and analyze various profitability, activity, liquidity, and solvency ratios and show you how to use them in a company’s evaluation.

Congratulations! You have now completed this course.