About this course: Financial Accounting is often called the language of business; it is the language that managers use to communicate the firm's financial and economic information to external parties such as shareholders and creditors. Nobody working in business can afford financial illiteracy. Whether you run your own business, work as a manager or are just starting your career, you want to understand financial information and be able to interact with accountants, controllers, and financial managers. You want to talk business! This course will provide you with the accounting language's essentials. Upon completion, you should be able to read and interpret financial statements for business diagnosis and decision-making. More importantly, you will possess the conceptual base to keep learning more sophisticated accounting and finance on your own. Do not forget that, as with any other language, becoming proficient with accounting requires constant practice.
Who is this class for: This course if primarily aimed at recent college graduates just beginning their career and anyone (managers, entrepreneurs, etc.) who needs to understand basic accounting concepts on the job.
Created by: IESE Business School
Taught by: Marc Badia, Assistant Professor
Accounting and Control
| Basic Info | Course 1 of 5 in the Foundations of Management Specialization |
| Level | Beginner |
| Commitment | 4 weeks of study, 2-4 hours/week |
| Language | English |
| Hardware Req | None |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Course Overview & Week 1: Introduction to Accounting - The Balance Sheet
Welcome! Before you start today's videos, please have a look at the syllabus. In this first session, 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. Objectives: To gain insight into the essence of accounting and become familiar with the balance sheet and its purpose.
10 videos, 7 readings
- Reading: Course Overview & Syllabus
- Reading: Reminder of Coursera's Honor Code
- Reading: About Week 1
- Reading: Transactions Week 1
- Video: Introduction - Welcome to the Course
- Video: 1. Accounting: The Language of Business
- Video: 2. Practice Case: The Campus Bookstore I
- Video: 3. Practice Case: The Campus Bookstore II
- Video: 4. Accounting for our First Transactions
- Video: 5. Accounting for More Transactions
- Video: 6. Explaining the Balance Sheet
- Video: 7. Defining an Asset
- Video: 8. Defining a Liability
- Video: 9. Recap
- Reading: Required Reading Week 1: "The Balance Sheet"
- Reading: Required Reading Week 1: "Introduction to Financial Accounting"
- Reading: Quiz 1 with Solutions
Graded: Quiz Week 1
WEEK 2
Week 2: The Income Statement
Now that you are familiar with the balance sheet, in week two 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. Course objectives: To be able to recognize a broader range of transactions on the balance sheet and to become familiar with the income statement.
11 videos, 5 readings
- Reading: About Week 2
- Reading: Transactions Week 2
- Video: 1. Introduction to Week 2
- Video: 2. Recap of Week 1
- Video: 3. Purchasing More Inventory
- Video: 4. Sales and Cost of Goods Sold
- Video: 5. Selling, General and Administrative Expenses
- Video: 6. Some Collections and Payments of Cash
- Video: 7. Depreciation and Amortization
- Video: 8. Interest from Bank Loan and Taxes
- Video: 9. Preparing the Balance Sheet
- Video: 10. Introducing the Income Statement
- Video: 11. Recap of Week 2 and Conclusions
- Reading: Required Reading Week 2: "The Income Statement"
- Reading: Required Reading Week 2: "Introduction to Financial Accounting"
- Reading: Quiz 2 with Solutions
Graded: Quiz Week 2
WEEK 3
Week 3: The Cash Flow Statement
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 week two. I'll also introduce a third financial report - the cash flow statement - and discuss liquidity. Course objectives: To understand the difference between liquidity and profitability, become familiar with T-accounts and gain insight into the purpose of the cash flow report.
14 videos, 4 readings
- Reading: About Week 3
- Reading: Transactions Week 3
- Video: 1. Introduction to Week 3
- Video: 2. Recap of Week 2
- Video: 3. T-Accounts and Journal Entries
- Video: 4. Setting up T-Accounts for the Campus Bookstore
- Video: 5. Sales, Cost of Goods Sold, Collections from Customers and Payment to Suppliers
- Video: 6. Other Operating Costs
- Video: 7. Transactions with Non-Current Assets
- Video: 8. Bank Loans and Interest
- Video: 9. Taxes, Closing Entries and Payments of Dividends
- Video: 10. Preparing the Balance Sheet
- Video: 11. Preparing the Income Statement
- Video: 12. Introducing the Cash Flow Statement I
- Video: 13. Introducing the Cash Flow Statement II
- Video: 14. Recap of Week 3 and Conclusions
- Reading: Required Reading Week 3: "The Statement of Cash Flows"
- Reading: Quiz 3 with Solutions
Graded: Quiz Week 3
WEEK 4
Week 4: Accrual Accounting
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 session, we'll discuss the difference between accrual and cash accounting and also read and interpret a real enterprise's financial statements. Course objectives: By the end of the session, you will be able to handle numerous transactions for the purposes of financial reporting, and understand the advantages of accrual accounting.
11 videos, 5 readings
- Reading: About Week 4
- Reading: Transactions Week 4
- Video: 1. Introduction to Week 4
- Video: 2. Recap of Week 3
- Video: 3. Accrual accounting vs. cash accounting
- Video: 4. Measuring performance with accrual accounting
- Video: 5. A few examples: prepaid insurance, accrued interest and advances from customers
- Video: 6. Performance evolution of the Campus Bookstore I
- Video: 7. Performance evolution of the Campus Bookstore II
- Video: 8. Reading and interpreting real financial statements I
- Video: 9. Reading and interpreting real financial statements II
- Video: 10. Advanced topics you can explore on your own
- Video: 11. Conclusions
- Reading: Quiz 4 Part I with Solutions
- Reading: Quiz Week 4 Background Information for Reference
- Reading: Recommended Reading
Graded: Quiz Week 4 - Part 1
Graded: Quiz Week 4 - Part 2
FAQs
How It Works
Coursework
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Creators
IESE Business School
For over fifty years, IESE, the graduate business school of the University of Navarra, has been at the forefront of management education, developing and inspiring business leaders who strive to make a deep, positive and lasting impact on the people, companies and society they serve.
Pricing
| Audit | Purchase Course | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Not available | Available |
| Receive a final grade | Not available | Available |
| Earn a shareable Course Certificate | Not available | Available |
Ratings and Reviews
This course refreshed my accounting skills
Great class! Amazing teacher! Now I can easily understand financial accounting and am ready to learn a ton more!
very good course!!!
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All is great except the last part. You didn't really teach in detail for how to interpret a company's financial statements. I had to watch the last 4 or 5 videos over and over again and do some research on my own. For example, you can calculate the ROS or ROE; but what should that be to be considered "VERY profitable"? You can calculate the days of sales in inventory, but how long should that be to be considered as "good"? How much cash do you need to be considered as having a "good" liquidity? These terms are very vague. I understand that you have no problem making such judgements, since you are experienced. But I'm not. So I just can't tell these things without having a precise criteria. And many other things were vague as well. I feel like the course ended abruptly. Maybe this course needs a Week 5. So 4 stars for 4 weeks.