Formal Financial Accounting

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

Introduction

### Course Review and Recommendation: Formal Financial Accounting on Coursera If you're looking to deepen your understanding of financial accounting and its formal foundations, the **Formal Financial Accounting** course on Coursera is a highly recommended option. This course is designed for individuals who have already been introduced to financial accounting concepts and want to take their knowledge to the next level. #### Overview The **Formal Financial Accounting** course builds upon prior knowledge gained in courses such as **Financial Accounting: Foundations** and **Financial Accounting: Advanced Topics**. With a strong emphasis on the technical elements of financial accounting, participants will become well-versed in key terminologies and concepts that form the backbone of accounting practices. The course not only arms you with the necessary jargon but also enhances your capability to interpret and understand financial statements effectively. #### Course Structure The course consists of an orientation followed by four comprehensive modules: 1. **Course Orientation:** The initial module sets the stage, introducing you to the course structure, fellow participants, and the instructor. It provides insights into navigating the online learning platform, ensuring you have all the technical skills needed to succeed. 2. **Module 1: Introduction to Financial Accounting Terminology:** Here, you will learn the language of accounting, crucial for anyone looking to work in business or finance. You’ll grasp essential terms such as debit, credit, and T-account, essential tools for navigating the accounting landscape. 3. **Module 2: Formal Financial Accounting for Assets:** This module dives into the significant components of a balance sheet, focusing on assets—including accounts receivables, inventories, and fixed assets. You'll learn how to track these accounts over time and understand their valuation, which is critical for managerial decisions. 4. **Module 3: Formal Financial Accounting for Liabilities and Shareholders’ Equity:** An essential part of financial accounting is understanding how businesses finance their operations. This module covers various liabilities—like accounts payable and loans—as well as sources of equity, such as IPOs and retained earnings. Mastering these concepts will advance your understanding of how financial decisions affect a company's balance sheet. 5. **Module 4: Applications of Formal Financial Accounting:** The concluding module provides a practical application of all learned concepts by taking you through the entire accounting cycle. You'll experience the process from financial transactions to the preparation of trial balances and final financial statements, offering invaluable hands-on experience. #### Why Take This Course? **Career Advancement:** The knowledge gained through this course can bolster your resume and enhance your career prospects in fields like accounting, finance, and management. **Practical Applications:** With real-world applications and a comprehensive understanding of the accounting cycle, you’ll be equipped to handle practical accounting scenarios in professional settings. **Flexible Learning:** As a Coursera offering, this course allows you to learn at your own pace, making it suitable for those with busy schedules. **Expert Instruction:** You'll be guided by experienced instructors who provide insights that bridge theory and practice, enriching your learning experience. #### Final Recommendation Overall, the **Formal Financial Accounting** course is a valuable resource for anyone looking to solidify their understanding of financial accounting. Whether you're a student preparing for a finance career or a professional aiming to sharpen your skills, this course will provide you with the foundational knowledge and technical expertise required to navigate the world of financial reporting and analysis confidently. If you’re ready to elevate your accounting skills, I highly recommend enrolling in this course. Dive into the intricacies of financial accounting today on Coursera!

Syllabus

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.

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.

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.

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.

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.