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Core Concepts of Accounting – Numbers and People

Approx. 27 hours to complete

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Course Summary

This course provides an introduction to the core concepts of accounting, including financial statements, accrual accounting, and budgeting. Students will learn how to analyze financial data and make informed decisions based on this analysis.

Key Learning Points

Understand the basics of financial accounting
Learn how to analyze and interpret financial statements
Explore the principles of accrual accounting
Discover the role of budgeting in financial decision-making

Job Positions & Salaries of people who have taken this course might have

Accountant
- USA: $50,000 - $70,000
- India: INR 3,00,000 - INR 5,00,000
- Spain: €25,000 - €35,000
Financial Analyst
- USA: $60,000 - $80,000
- India: INR 4,00,000 - INR 6,00,000
- Spain: €30,000 - €40,000
Budget Analyst
- USA: $55,000 - $75,000
- India: INR 3,50,000 - INR 5,50,000
- Spain: €28,000 - €38,000

Learning Outcomes

Understand the basic principles of financial accounting
Analyze and interpret financial statements
Use financial data to make informed decisions

Prerequisites or good to have knowledge before taking this course

No prior accounting knowledge required
Basic understanding of math

Course Difficulty Level

Beginner

Course Format

Online
Self-paced

Similar Courses

Financial Accounting Fundamentals
Financial Statements

Related Education Paths

Notable People in This Field

Investor
Personal Finance Expert

Related Books

Description

Whenever the word “accounting” is pronounced, it is immediately associated with the need to memorize endless boring numbers. However, it is the common financial statements that contain important information that provides inputs for valuation of investment projects. The only challenge is how to properly extract them.

Accounting and finance are indeed intertwined. Sometimes people that are not experienced in the area even mix them up. But most often emphasis in accounting is on numbers. Still, the deep understanding of key accounting concepts helps reveal the interests and actions of people behind these numbers. And the human dimension of accounting adds invaluable insight in the potential of successful project implementation. This Course discusses core ideas and concepts of both financial and managerial accounting. It by no means pretends to be comprehensive to any extent. But, being rather an accounting overview, it focuses on the issues that are most relevant and important for effective valuation of investment projects. The learners will gain insight into the essence of accounting. They will be able to use the obtained knowledge and skills to successfully advance in their career at a financial institution, as well as in the area of financial management at non-financial businesses. To pursue a career in accounting, a more detailed study is strongly recommended.

Outline

Financial Accounting – Basic Principles. Transaction Analysis. Income Recognition. Accounting for Current Assets
Introduction
1.1. Why study accounting?
1.2. What is accounting? Financial vs. managerial accounting
1.3. Key financial statements – BS, IS, SCF
1.4. Accounting principles. GAAP
1.5. Double-entry bookkeeping
1.6. Transaction analysis – an example
1.7. Revenue and expense recognition
1.8. Cash and accounts receivable
1.9. Accounting for inventories (1) – cost travel
1.10. Accounting for inventories (2) – cost of goods sold
1.11. Accounting for inventories (3) – FIFO, LIFO, LCM
Konstantin Kontor
AIBEc. The American Institute of Business and Economics
Grading
Handouts – an important comment
1.1. Financial accounting basics
1.2. Accounting record-keeping
1.3. Transaction analysis – an example
1.4. Revenue and expense recognition – an overview
1.5. Accounting for uncollectibles
1.6. Accounting for inventories (1) – cost travel
1.7. Accounting for inventories (2) – basic concepts. FIFO, LIFO, LCM
1 (Practice)
1 - Basic accounting procedures for current assets

Operational Assets. Depreciation. Short-Term Investments. Long-Term Liabilities. Shareholders’ Equity. Some Tax Issues
2.1. Operational assets – types and accounting approach
2.2. Depreciation
2.3. Depreciation tax shield
2.4. Intangible assets – accounting and amortization
2.5. Short-term investments in bonds
2.6. Short-term investments in stocks
2.7. Bonds (1) – parameters and accounting approach
2.8. Bonds (2) – amortization of premium/discount
2.9. Equity (1) – accounting for common and preferred stock
2.10. Equity (2) – treasury stock and stock dividends
2.11. Accounting for taxes – an overview
2.12. Deferred taxes – an example
2.1. Operational assets
2.2. Depreciation tax shield
2.3. Accounting for long-term liabilities
2.4. Accounting for shareholders’ equity
2.5. Accounting for income taxes – an overview
2 (Practice)
2 - Depreciation, amortization, and deferred items

The Statement of Cash Flows. Analysis and Use of Financial Statements. Financial Accounting and Project Valuation
3.1. The statement of cash flows (SCF) – idea and format
3.2. SCF – Example 1
3.3. SCF – a more advanced Example 2 (1)
3.4. SCF – a more advanced Example 2 (2)
3.5. Valuation revisited – cash flows, net income, and FCF
3.6. Comparison of interest treatment in SCF and FCF
3.7. The big question – why use earnings?
3.8. Analysis and use of financial statements – an overview
3.9. Ratio analysis (1) – current position and performance
3.10. Ratio analysis (2) – capital structure
3.11. Ratio analysis (3) – operating performance
3.12. Financial accounting and valuation – conclusions
3.1. The statement of cash flows (1) – the idea and format
3.2. The statement of cash flows (2) – an example
3.3. Analysis and use of financial statements – an overview
3 (Practice)
3 - SCF inputs and ROI ratios

Managerial Accounting – Core Ideas. Cost Behavior. Direct and Indirect Costs. Indirect Cost Allocation
4.1. What is managerial accounting? Key ideas
4.2. Managerial vs. financial accounting – a comparison
4.3. Systems of managerial accounting
4.4. Introduction to costs – major terms
4.5. Cost behavior
4.6. Total cost – concept and information
4.7. Direct and indirect costs
4.8. Indirect cost allocation
4.9. Cost allocation example (1) – initial cost allocation
4.10. Cost allocation example (2) – cost re-allocation
4.11. Cost allocation example (3) – cost allocation rates
4.12. The tracing and allocation roadmap
4.1. The nature of managerial accounting
4.2. Cost behavior
4.3. Total cost (1) – the concept. Direct and indirect costs
4.4. Total cost (2) – direct costs measurement and overhead allocation
4 (Practice)
4 - Cost behavior and cost allocation

Activity-Based Costing (ABC). Relevant Costs
5.1. Activity-based costing (ABC) – an overview
5.2. ABC for a retail firm (1)
5.3. ABC for a retail firm (2)
5.4. ABC in manufacturing (1)
5.5. ABC in manufacturing (2)
5.6. Insights provided by ABC
5.7. Relevant costs – an idea
5.8. Make-or-buy decisions (1)
5.9. Make-or-buy decisions (2)
5.10. Product mix under capacity constraints
5.11. Customer profit, ABC, and relevant costs
5.12. Irrelevance of past costs
5.1. Activity-based costing (1) – ABC for a retail firm
5.2. Activity-based costing (2) – ABC in manufacturing
5.3. Insights provided by ABC
5.4. The concept of relevance
5.5. Outsourcing and make-or-buy decisions
5.6. Product mix under capacity constraints
5.7. Customer profit, ABC, and relevant costs
5.8. Irrelevance of past costs
5 (Practice)
5 - Costs, activities, and relevance

Budgets and Responsibility Accounting. Accounting and Valuation – Final Conclusions
6.1. Budgets – an overview. The budgeting cycle
6.2. Budgets, planning and project management
6.3. The master budget – an idea
6.4. Operational budget – the data (1)
6.5. Operational budget – the data (2)
6.6. Preparing operational budget (1)
6.7. Preparing operational budget (2)
6.8. Preparing operational budget (3)
6.9. Preparing operational budget (final steps)
6.10. Budgeting and responsibility accounting
6.11. Changes in budgeting – major trends
6.12. Accounting and valuation – final conclusions
6.1. Budgets – ideas, roles, and advantages
6.2. Preparing operating budget (1) – the data
6.3. Preparing operating budget (2) – the road map
6.4. Budgets and responsibility accounting
Final Test

Summary of User Reviews

This course has received positive reviews from many users. The overall rating is high and users appreciate the course's clear and concise explanations of accounting concepts. One key aspect that many users thought was good is the interactive quizzes and assignments that help reinforce learning.

Pros from User Reviews

Clear and concise explanations of accounting concepts
Interactive quizzes and assignments
Engaging instructors
Helpful resources and materials
Flexible schedule and pace

Cons from User Reviews

Some users found the course content to be too basic
A few users experienced technical difficulties with the platform
Not all users found the course to be engaging
Some users found the course to be too time-consuming
A few users felt that the course could benefit from more real-life examples

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