Financial Accounting Fundamentals

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

Introduction

### Course Review and Recommendation: Financial Accounting Fundamentals on Coursera **Course Title**: Financial Accounting Fundamentals **Offered by**: Darden School of Business, University of Virginia **Instructor**: Top-ranked faculty --- Financial accounting can often appear intimidating to those unfamiliar with its principles and terminologies. However, the **Financial Accounting Fundamentals** course offered on Coursera makes this subject approachable and engaging. Developed by the esteemed Darden School of Business at the University of Virginia, this course meticulously crafted by industry-leading faculty provides a comprehensive foundation in financial accounting for beginners and professionals alike. #### Overview of the Course The course's structured approach utilizes concise video lectures, practical examples based on the financial records of a fictional small business, and interactive activities to ensure a robust understanding of the core principles. The curriculum primarily focuses on the three critical financial statements—**Balance Sheet**, **Income Statement**, and **Statement of Cash Flows**—that form the bedrock of financial accounting. From the outset, the course emphasizes not just the mechanics of accountancy but also the vital informational context that financial accounting serves for various stakeholders, be it managers, investors, or regulatory bodies. This insightful perspective sets the stage for deeper learning and application. #### Syllabus Breakdown 1. **Introduction to Financial Accounting, the Financial Statements, and the Balance Sheet** - The course begins with foundational concepts, exploring the purpose of financial accounting and the standards that govern it. The introduction of the Balance Sheet provides participants with a gateway to understanding financial positions. 2. **Introduction to Recording Transactions** - As students dive into the recording of transactions, they engage with real-world applications through journaling entries and T-accounts. The hands-on approach utilizing The Garden Spot case study enhances comprehension and retention. 3. **The Income Statement, Revenue and Expense Transactions, and Adjusting Entries** - Participants will learn about revenue and expenses while mastering adjusting entries under accrual accounting. This segment reinforces the importance of timing in recognizing financial events and prepares students for preparing financial statements. 4. **The Statement of Cash Flows, Financial Statement Preparation** - This pivotal week covers the practical preparation of the end-of-period financial statements, with significant attention devoted to understanding cash flows—critical for assessing a company's liquidity and operational efficiency. 5. **More Transactions, Analysis of Financial Statements, and an Annual Report** - The course culminates in an analysis of financial statements for The Garden Spot's second year and a case study on PepsiCo's Annual Report. This real-world application allows learners to synthesize their knowledge and gain insights from seasoned financial reports presented by established companies. #### Learning Experience The educational experience is designed to ensure learners actively engage with the content, moving beyond passive video watching. “Your turn” activities encourage the application of concepts immediately after learning, solidifying understanding through practice. The assessments and feedback are structured to reinforce learning objectives, enabling students to measure their progress effectively. #### Why You Should Enroll **Financial Accounting Fundamentals** is highly recommended for anyone looking to build a strong foundation in financial accounting. Whether you are a complete beginner, a small business owner, or pursuing a career in finance, this course will equip you with essential skills that are transferable across various domains. The quality of instruction from the Darden School of Business and the practical focus on real-world applications distinguish this course from others online. Moreover, the flexibility of Coursera allows you to learn at your own pace, making it a suitable option for busy professionals or students balancing multiple commitments. With its comprehensive format and supportive learning environment, the **Financial Accounting Fundamentals** course not only educates but inspires confidence in handling financial data and interpreting its implications for business operations. **Final Recommendation**: If you want to demystify financial accounting and gain impactful skills that can enhance your professional life, enroll in the **Financial Accounting Fundamentals** course today. Equip yourself with the knowledge to make informed financial decisions and effectively communicate financial information in any business setting.

Syllabus

Introduction to Financial Accounting, the Financial Statements, and the Balance Sheet

During this first week, we’ll learn about the context for financial accounting, including the informational role it plays for both internal and external audiences. We’ll explain accounting standards, which ensure financial information is conveyed clearly and effectively. Finally, we’ll describe the three primary financial statements as part of a recurring accounting process, called the accounting cycle, and then dive into one of those statements: the Balance Sheet (BS).

After learning about the Balance Sheet, we’re ready to move on to using journal entries to record transactions, then t-accounts to summarize transactions recorded during an accounting period. We’ll apply those tools to record transactions for a fictional startup company, The Garden Spot, during its first year of operations (TGS Year 1). As we go along, we’ll also evaluate the effect of transactions on the balance sheet equation to ensure it remains balanced.

Now that we’ve learned the fundamentals of recording transactions, we’re ready to dive into another financial statement: the Income Statement (IS). After learning about the Income Statement, we’ll record revenue and expense transactions, and summarize these transactions in a special account. Finally, we'll record adjusting entries in accordance with accrual accounting, prior to the preparation of the financial statements.

After learning about the Income Statement, revenue and expense transactions, and adjusting entries, we’re ready to move on to preparing our end-of-period financial statements. We’ll prepare the Income Statement and Balance Sheet based on the transactions that have been recorded. Then, we’ll dive into the Statement of Cash Flows (SCF) and learn how to prepare that financial statement. Finally, we’ll briefly discuss closing entries, since we've been preparing them as we've been going along!

During this last week, we’ll walk through the second year of operations for our fictional startup company, The Garden Spot (TGS Year 2), for additional practice recording transactions and preparing our end-of-period financial statements. Then, we’ll do some analysis of The Garden Spot’s financial statements. Finally, we’ll take a look at PepsiCo’s Annual Report as an example of reporting for a publicly traded U.S. company.