Accounting: Principles of Financial Accounting

This course is part of multiple programs.

Instructor: Marc Badia

168,846 already enrolled

Included with

Learn more

4 modules

Gain insight into a topic and learn the fundamentals.

3,333 reviews

Beginner level

No prior experience required

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

97%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

3,333 reviews

Beginner level

No prior experience required

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

97%

Most learners liked this course

What you'll learn

Utilize accounting principles for informed business decision-making.

Skills you'll gain

Tools you'll learn

Microsoft Excel

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

9 assignments

Taught in English

91% of learners achieved a positive career outcome

See how employees at top companies are mastering in-demand skills

Learn more about Coursera for Business

logos of Petrobras, TATA, Danone, Capgemini, P&G and L'Oreal

Build your subject-matter expertise

This course is available as part of

When you enroll in this course, you'll also be asked to select a specific program.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 4 modules in this course

Financial Accounting, the language of business, is essential for anyone interacting with financial information. Whether you're a business owner, manager, or just starting your career, understanding financial statements is crucial. This course provides the fundamentals of financial accounting, empowering you to interpret financial statements like balance sheets and income statements for informed decision-making. You'll gain the conceptual base for further learning in accounting and finance. No prior experience is needed. Practice your skills using Microsoft Excel, a critical tool in finance and accounting. Understand the basics of accounting, improving your business and potentially unlocking free courses and certificate opportunities along the way.

Welcome! Before you start today's videos, please have a look at the syllabus. In this first module, I'll give you an overview of what accounting is all about and why it's important to have a basic proficiency in this "language." In addition, I'll introduce one of the most important financial reports - the balance sheet - and a practical real-world case so you can put theory into practice.

What's included

10 videos7 readings2 assignments

10 videosTotal 48 minutes

Introduction - Welcome to the Course4 minutes
1. Accounting: The Language of Business6 minutes
2. Practice Case: The Campus Bookstore I7 minutes
3. Practice Case: The Campus Bookstore II3 minutes
4. Accounting for our First Transactions3 minutes
5. Accounting for More Transactions5 minutes
6. Explaining the Balance Sheet7 minutes
7. Defining an Asset6 minutes
8. Defining a Liability4 minutes
9. Recap2 minutes

7 readingsTotal 92 minutes

Course Overview & Syllabus5 minutes
Reminder of Coursera's Honor Code1 minute
Transactions Module 15 minutes
Get help and meet other learners. Join your Community!5 minutes
About Module 11 minute
Required Reading Module 1: "The Balance Sheet"30 minutes
Required Reading Module 1: "Introduction to Financial Accounting"45 minutes

2 assignmentsTotal 50 minutes

Quiz Module 1 30 minutes
Why Accounting? A Quick Business Check20 minutes

Now that you are familiar with the balance sheet, in this second module we'll learn how to account for a variety of transactions. In addition, I'll introduce you to another key financial report: the income statement.

What's included

11 videos4 readings2 assignments

11 videosTotal 49 minutes

1. Introduction to Module 21 minute
2. Recap of Module 12 minutes
3. Purchasing More Inventory3 minutes
4. Sales and Cost of Goods Sold7 minutes
5. Selling, General and Administrative Expenses5 minutes
6. Some Collections and Payments of Cash4 minutes
7. Depreciation and Amortization8 minutes
8. Interest from Bank Loan and Taxes4 minutes
9. Preparing the Balance Sheet4 minutes
10. Introducing the Income Statement7 minutes
11. Recap of Module 2 and Conclusions4 minutes

4 readingsTotal 44 minutes

About Module 21 minute
Transactions Module 23 minutes
Required Reading Module 2: "The Income Statement"30 minutes
Required Reading Module 2: "Introduction to Financial Accounting"10 minutes

2 assignmentsTotal 60 minutes

Quiz Module 230 minutes
What Affects the Income Statement?30 minutes

Now that you have a good grasp of the balance sheet and income statement, I'll help you master how to recognize the transactions we went over in the second module. I'll also introduce a third financial report - the cash flow statement - and discuss liquidity.

What's included

14 videos3 readings2 assignments

14 videosTotal 67 minutes

1. Introduction to Module 32 minutes
2. Recap of Module 23 minutes
3. T-Accounts and Journal Entries6 minutes
4. Setting up T-Accounts for the Campus Bookstore3 minutes
5. Sales, Cost of Goods Sold, Collections from Customers and Payment to Suppliers7 minutes
6. Other Operating Costs4 minutes
7. Transactions with Non-Current Assets8 minutes
8. Bank Loans and Interest4 minutes
9. Taxes, Closing Entries and Payments of Dividends6 minutes
10. Preparing the Balance Sheet4 minutes
11. Preparing the Income Statement5 minutes
12. Introducing the Cash Flow Statement I7 minutes
13. Introducing the Cash Flow Statement II4 minutes
14. Recap of Module 3 and Conclusions3 minutes

3 readingsTotal 60 minutes

About Module 310 minutes
Transactions Module 310 minutes
Required Reading Module 3: "The Statement of Cash Flows"40 minutes

2 assignmentsTotal 60 minutes

Quiz Module 330 minutes
Which Account Is Affected?30 minutes

By using accrual accounting we can measure performance when a financial transaction takes place, even if no cash has actually changed hands. In this final module, we'll discuss the difference between accrual and cash accounting and also read and interpret a real enterprise's financial statements.

What's included

11 videos6 readings3 assignments1 peer review

11 videosTotal 67 minutes

1. Introduction to Module 42 minutes
2. Recap of Module 36 minutes
3. Accrual accounting vs. cash accounting5 minutes
4. Measuring performance with accrual accounting6 minutes
5. A few examples: prepaid insurance, accrued interest and advances from customers7 minutes
6. Performance evolution of the Campus Bookstore I8 minutes
7. Performance evolution of the Campus Bookstore II7 minutes
8. Reading and interpreting real financial statements I8 minutes
9. Reading and interpreting real financial statements II4 minutes
10. Advanced topics you can explore on your own7 minutes
11. Conclusions6 minutes

6 readingsTotal 60 minutes

About Module 410 minutes
Transactions Module 410 minutes
Quiz 4 Part I with Solutions10 minutes
Quiz Module 4 Background Information for Reference10 minutes
Prompt10 minutes
Solutions10 minutes

3 assignmentsTotal 90 minutes

Quiz Module 4 - Part 130 minutes
New Quiz30 minutes
Cash or Accrual?30 minutes

1 peer reviewTotal 60 minutes

Quiz Module 4 - Part 260 minutes

Earn a career certificate

Add this credential to your LinkedIn profile, resume, or CV. Share it on social media and in your performance review.

Instructor

Instructor ratings

(936 ratings)

Marc Badia

IESE Business School

1 Course168,846 learners

Offered by

IESE Business School

Explore more from Finance

University of Virginia
Financial Accounting Fundamentals
Course
Corporate Finance Institute
Accounting Fundamentals
Course
Politecnico di Milano
Fundamentals of financial and management accounting
Course
Fundação Instituto de Administração
Financial Accounting
Course

Why people choose Coursera for their career

Felipe M.

Learner since 2018

"To be able to take courses at my own pace and rhythm has been an amazing experience. I can learn whenever it fits my schedule and mood."

Jennifer J.

Learner since 2020

"I directly applied the concepts and skills I learned from my courses to an exciting new project at work."

Larry W.

Learner since 2021

"When I need courses on topics that my university doesn't offer, Coursera is one of the best places to go."

Chaitanya A.

"Learning isn't just about being better at your job: it's so much more than that. Coursera allows me to learn without limits."

Learner reviews

5 stars
85.19%
4 stars
12.58%
3 stars
1.16%
2 stars
0.20%
1 star
0.83%

Showing 3 of 3333

Reviewed on Oct 5, 2020

Its an Good course to know more about basic of Accounts, it will help u to learn more about basic and clear out issue regarding balance sheet. Income statement and financial statements.

Reviewed on Jul 16, 2017

Its pretty easy to understand with a relevant real world example on how to understand financial statements. It also provide further reading which is helpful for ones who want to learn more

Reviewed on May 12, 2024

I finally found the course I was looking for. Great mix between theory, examples and practice. Prof. Badia is very clear in his explanation are very interesting. I would definitely recommend.

View more reviews

Unlock access to 10,000+ courses with a subscription
Advance your career with an online degree
Earn a degree from world-class universities - 100% online
Join over 4,700 global companies that choose Coursera for Business

Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.