Accounting and Financial Statement Analysis

Curriculum

• Introduction to Accounting: Why Is Accounting Important?

  4 Lessons 11 Min

  In the introductory section, we discuss the importance of bookkeeping and financial accounting. You will meet your instructor and get acquainted with the structure and main topics covered in this Accounting and Financial Statement Analysis course.

  What does the course cover Free What Is Accounting and Why Do We Need It Free The Importance of Bookkeeping - Good Accounting Records Are Essential Free Financial Accounting - Who Needs Financial Reports
• Main Elements of the Core Financial Statements

  15 Lessons 48 Min

  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.

  The Three Main Financial Statements - P&L, Balance Sheet and Cash Flow Statement Income Statement Items Revenue Types - Practical Exercise The Revenue Recognition Principle - Why Is it so Important Types of Costs The Expense Recognition Principle - When to Recognize Expenses Income Taxes P&L Formats Balance Sheet Items Depreciation and Amortization (D&A) Historical Cost vs. Fair Value Accounting Types of Assets - Practical Example Тypes of Liabilities - Practical Example What is Equity Types of Equity - Practical Example
• Core Accounting Principles

  5 Lessons 16 Min

  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.

  The Main Accounting Equation and How It Stays in Balance General & Subsidiary Ledgers - This Is How a Firm Organizes Its Accounts Making Sense of Debits and Credits! Balance Sheet T-Accounts Income Statement T-Accounts The Cornerstone Principle of Accounting - Double Entry Bookkeeping
• A Complete Case Study: Bookkeeping Records + Income Statement + Balance Sheet + Cash Flow Statement

  5 Lessons 34 Min

  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.

  Practical Exercise Bookkeeping entries + Building a P&L & a Balance Sheet (1 of 4) Practical Exercise Bookkeeping entries + Building a P&L & a Balance Sheet (2 of 4) Practical Exercise Bookkeeping entries + Building a P&L & a Balance Sheet (3 of 4) Practical Exercise Bookkeeping entries + Building a P&L & a Balance Sheet (4 of 4) Course Challenge - Build a P&L and a Balance Sheet from Scratch
• Preparing a Cash Flow Statement

  9 Lessons 35 Min

  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.

  The Importance of Timing - Revenue and Expense Recognition The Difference Between Cash Flow and Revenue-A Must Know For Every Entrepreneur The Timing of Payments - Here Is How Many Business Owners Improve Their Cash Flow Accrual Accounting Calculating cash flows - Understand if a business makes or burns cash The Three Parts of Cash Flow Statement explained Cash Flow Computations - The Direct Method Cash Flow Computations - The Indirect Method Building a Cash Flow Statement in Practice
• Introduction to Financial Reporting

  3 Lessons 10 Min

  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.

  Introduction to Financial Statements Let's Open P&G's 2021 Financial Report and Take a Look At It Together Who Verifies that the Figures Presented in Financial Statements are Correct
• Financial Statement Analysis: Science and Practice

  8 Lessons 33 Min

  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 Essence of Financial Statement Analysis in Five Key Dimensions Calculating Subtotals, Totals and Year-on-Year Growth Key Mechanics of Financial Statement Analysis Performing a Meaningful Analysis Using Different P&L and Balance Sheet Formats + Horizontal and Vertical Analysis An Introduction to the Days Methodology - Understanding Working Capital Trends Financial Ratios Every Investor Should Use - Understanding Financial Ratios Practical Exercise Analyzing P&G's Business Through Financial Ratios (1 of 2) Practical Exercise Analyzing P&G's Business Through Financial Ratios (2 of 2)
• Financial Statement Analysis - Tesla Exercise

  5 Lessons 23 Min

  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.

  What You Will See Next in This Section How to Download Tesla's Historical Financials Calculating and Analyzing Profitability Ratios Calculating and Analyzing Liquidity Ratios Calculating and Analyzing Solvency Ratios
• Course Completion

  1 Lesson 1 Min

  Congratulations! You have now completed this course.

  Congratulations!