Accounting: Principles of Financial Accounting

This course is part of multiple programs.

Instructor: Marc Badia

Access provided by Talisis University

165,336 already enrolled

4 modules

Gain insight into a topic and learn the fundamentals.

3,318 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.

3,318 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

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 videos Total 48 minutes

Introduction - Welcome to the Course 4 minutes
1. Accounting: The Language of Business 6 minutes
2. Practice Case: The Campus Bookstore I 7 minutes
3. Practice Case: The Campus Bookstore II 3 minutes
4. Accounting for our First Transactions 3 minutes
5. Accounting for More Transactions 5 minutes
6. Explaining the Balance Sheet 7 minutes
7. Defining an Asset 6 minutes
8. Defining a Liability 4 minutes
9. Recap 2 minutes

7 readings Total 92 minutes

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

2 assignments Total 50 minutes

Quiz Module 1 30 minutes
Why Accounting? A Quick Business Check 20 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 videos Total 49 minutes

1. Introduction to Module 2 1 minute
2. Recap of Module 1 2 minutes
3. Purchasing More Inventory 3 minutes
4. Sales and Cost of Goods Sold 7 minutes
5. Selling, General and Administrative Expenses 5 minutes
6. Some Collections and Payments of Cash 4 minutes
7. Depreciation and Amortization 8 minutes
8. Interest from Bank Loan and Taxes 4 minutes
9. Preparing the Balance Sheet 4 minutes
10. Introducing the Income Statement 7 minutes
11. Recap of Module 2 and Conclusions 4 minutes

4 readings Total 44 minutes

About Module 2 1 minute
Transactions Module 2 3 minutes
Required Reading Module 2: "The Income Statement" 30 minutes
Required Reading Module 2: "Introduction to Financial Accounting" 10 minutes

2 assignments Total 60 minutes

Quiz Module 2 30 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 videos Total 67 minutes

1. Introduction to Module 3 2 minutes
2. Recap of Module 2 3 minutes
3. T-Accounts and Journal Entries 6 minutes
4. Setting up T-Accounts for the Campus Bookstore 3 minutes
5. Sales, Cost of Goods Sold, Collections from Customers and Payment to Suppliers 7 minutes
6. Other Operating Costs 4 minutes
7. Transactions with Non-Current Assets 8 minutes
8. Bank Loans and Interest 4 minutes
9. Taxes, Closing Entries and Payments of Dividends 6 minutes
10. Preparing the Balance Sheet 4 minutes
11. Preparing the Income Statement 5 minutes
12. Introducing the Cash Flow Statement I 7 minutes
13. Introducing the Cash Flow Statement II 4 minutes
14. Recap of Module 3 and Conclusions 3 minutes

3 readings Total 60 minutes

About Module 3 10 minutes
Transactions Module 3 10 minutes
Required Reading Module 3: "The Statement of Cash Flows" 40 minutes

2 assignments Total 60 minutes

Quiz Module 3 30 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 videos Total 67 minutes

1. Introduction to Module 4 2 minutes
2. Recap of Module 3 6 minutes
3. Accrual accounting vs. cash accounting 5 minutes
4. Measuring performance with accrual accounting 6 minutes
5. A few examples: prepaid insurance, accrued interest and advances from customers 7 minutes
6. Performance evolution of the Campus Bookstore I 8 minutes
7. Performance evolution of the Campus Bookstore II 7 minutes
8. Reading and interpreting real financial statements I 8 minutes
9. Reading and interpreting real financial statements II 4 minutes
10. Advanced topics you can explore on your own 7 minutes
11. Conclusions 6 minutes

6 readings Total 60 minutes

About Module 4 10 minutes
Transactions Module 4 10 minutes
Quiz 4 Part I with Solutions 10 minutes
Quiz Module 4 Background Information for Reference 10 minutes
Prompt 10 minutes
Solutions 10 minutes

3 assignments Total 90 minutes

Quiz Module 4 - Part 1 30 minutes
New Quiz 30 minutes
Cash or Accrual? 30 minutes

1 peer review Total 60 minutes

Quiz Module 4 - Part 2 60 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

(933 ratings)

Marc Badia

IESE Business School

1 Course 165,336 learners

Offered by

IESE Business School

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
85.20%
4 stars
12.62%
3 stars
1.17%
2 stars
0.15%
1 star
0.84%

Showing 3 of 3318

Reviewed on Nov 21, 2020

It was a distinct and fruitful experience that added to me theoretical information with valuable and practical exercises based on basic accounting .I would thank the IESE and the profiessor .

Reviewed on Dec 18, 2020

Very interesting. Some of the points regarding definitions were lost - Prof Badia explained this so much better than reading but notes and slowing down the video was needed for me to recall these.

Reviewed on Oct 30, 2021

Such a simple but impressive course. Really streghthen my views in basic accounting principles as an accounting student. Thank your Prof. Marc Badia, IESE Business School, and Coursera.

View more reviews