Fundamentals of financial and management accounting

Go to Course: https://www.coursera.org/learn/financial-accounting-polimi

Introduction

### Course Review: Fundamentals of Financial and Management Accounting on Coursera In today's fast-paced business landscape, a solid grasp of financial and management accounting is essential for professionals across various fields. Whether you're an aspiring accountant, a business manager, or simply looking to enhance your financial literacy, the **Fundamentals of Financial and Management Accounting** course on Coursera offers an excellent starting point. #### Overview This course serves as an introduction to the basic principles of accounting, equipping learners with the necessary knowledge to comprehend how companies track financial events and provide insights into their performance. The structured curriculum makes it an ideal choice for those with little to no accounting background. Students will delve into the essential components of financial statements, including the balance sheet, income statement, and cash flow statement, while learning to analyze and interpret these documents. #### Syllabus Breakdown - **Week 1: Introduction to Accounting** The course kicks off with the basics, defining key terms and distinguishing between financial and management accounting. This foundation is critical to understanding how enterprises operate and report their financial activities. - **Financial Reports** The second week focuses on the annual report and its vital components, providing students with the tools to understand the balance sheet, income statement, and cash flow statement. Learning how to read these financial documents is essential for evaluating a company's overall health. - **Management Accounting** Diving into management accounting, students will learn about costs, their classifications, and the principles of cost allocation. This week’s lessons are particularly relevant for those interested in internal business strategies and budgeting. - **Long-term Decision Making** The fourth week introduces decision-making concepts, including investment appraisal and the Net Present Value (NPV) formula. Through practical examples, students will enhance their ability to make informed financial decisions, a skill crucial for any business leader. - **Short-term Decision Making** Lastly, the course covers short-term decision-making strategies, discussing concepts like contribution margins and cost-volume-profit analysis. This week’s topics provide practical applications for managing everyday business operations effectively. #### Strengths of the Course 1. **Structured Learning**: The course is carefully structured to build upon each concept, making it accessible for beginners while still providing value for those with some prior knowledge of accounting. 2. **Practical Application**: The inclusion of real-world applications, particularly in the decision-making sections, ensures that students can see the relevance of their learning in a business context. 3. **Flexible Learning**: Being an online course, it allows students to progress at their own pace, which is a significant advantage for those balancing work or other commitments. 4. **Expert Instruction**: Led by experienced instructors, learners can benefit from expert insights and clarify their doubts throughout the course. #### Recommendations The **Fundamentals of Financial and Management Accounting** course is highly recommended for: - **Aspiring Accountants**: Those looking to establish a career in accounting will find this course invaluable. - **Business Students**: Students pursuing degrees in business or finance will benefit from understanding these fundamental principles. - **Entrepreneurs and Managers**: Individuals aiming to run their businesses effectively can greatly enhance their decision-making skills through the concepts taught. In conclusion, whether for career advancement or personal development, this Coursera course is an excellent investment for anyone keen on mastering the basics of financial and management accounting. With its logical flow and practical insights, learners will emerge with the confidence needed to interpret financial data and make informed business decisions. Sign up today and take the first step towards financial literacy!

Syllabus

Week 1 - Introduction to accounting

Within this week we will define what is an enterprise, what is accounting and we will discuss the distinction between financial and management accounting.

Within this week we will learn what is the "Annual report" and its components: balance sheet, income statement, cash flow statement.

Within this week we will learn the definition of management accounting, the definition of costs and their classification and the reference schema for cost allocation (proportional vs causal allocation).

Within this week we will learn the definition of decision making and the classification of the different types of decisions. We will introduce the concept of investment appraisal and explain the NPV formula for investment appraisal. We will furthermore solve small example of NPV application.

Within this week we will introduce the basic concepts of short-term decision making: contribution margin, fixed costs, variable costs and avoidable costs. We will approach cost-volume-profit analysis and discuss examples of it.