Learn the fundamentals and building blocks of the accounting process
Summary
This free online course, “Introduction to Accounting,” provides a comprehensive guide to the fundamental aspects of the accounting process. It is designed for beginners and professionals looking to refresh their knowledge. The course covers the essential building blocks required for financial modeling and Wall Street financial analysis.
Participants will learn to construct and understand the formats of the income statement, balance sheet, and cash flow statement. They will define key financial statement terms, record transactions such as invoicing, raising equity, and buying inventory, and prepare simple financial statements from scratch. The course explains the differences between profit and cash and teaches how to create a cash flow statement using information from the balance sheet and income statement.
The curriculum is divided into two main sections. The first section focuses on constructing the balance sheet and income statement, covering the layout and preparation of these financial documents. The second section delves into the cash flow statement, outlining its format, explaining its distinctions from the income statement, and demonstrating its preparation.
The course includes applied exercises, case studies, quizzes, and two downloadable PDF reference guides—a factsheet and a financial statements glossary. This interactive approach ensures that learners can study at their own pace and test their understanding.
Ideal for anyone needing a solid foundation in accounting, this course is particularly beneficial for finance professionals preparing for advanced financial modeling and valuation courses offered by CFI.
What You’ll Learn
- Explain the format of the income statement and balance sheet
Requirements
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No prerequisite knowledge is required!
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Access to a PC or Mac
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An Internet connection, including the ability to play audio as courses include voice lectures
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Familiarity with basic Internet applications (email and web browser)
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A recent version of Microsoft Internet Explorer, Firefox, Chrome, Safari or another web browser
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An updated version of Microsoft Excel
Description
Introduction to Accounting course overview:
This FREE Introduction to Accounting  course will guide you through the fundamentals of the accounting process. We will explore the layout of the balance sheet, income statement, and cash flow statement; and demonstrate how to prepare financial statements from scratch. This fundamental accounting course is an essential building block required for performing financial modeling and other types of Wall Street financial analysis.
Constructing an income statement and balance sheet
In the first section of this free accounting course, we will explore the layout of the balance sheet and income statement, Â how transactions are recorded, and how to prepare a simple balance sheet and income statement. By the end of this section, you will have a solid understanding of how to construct a balance sheet and income statement.
- Explain the format of the income statement and balance sheet
- Define various financial statement terms (e.g. accounts receivable, prepayments, etc.)
- Record financial statement transactions (e.g. invoicing, raising equity, buying inventory, etc.)
- Prepare a simple income statement and balance sheet
Constructing a cash flow statement
In this second section of this Intro to Accounting course, we will explore the layout of the cash flow statement, explain the differences between the cash flow statement and the income statement, and prepare a cash flow statement from scratch. By the end of this section, you will have a solid understanding of how to construct a cash flow statement.
- Outline the format of the cash flow statement
- Explain the difference between profit and cash
- Prepare a simple cash flow statement using the balance sheet and income statement
More Accounting Course Details
This online accounting course incorporates a wide range of applied exercises and case studies. Sophisticated search and navigation tools allow you to go at your own pace while quizzes test what you’ve just learned.
The course also includes two PDF reference guides – an accounting factsheet and a financial statements glossary – that can be used while taking the course and downloaded to your computer for future reference. This is the ultimate accounting crash course to prep for Wall Street careers!
Who this course is for:
- This free online accounting course is designed for anyone who wants to review the fundamentals and building blocks of the accounting process.
- This class will also be useful for professionals who work in finance and want to review the concepts required for financial modeling and valuation in CFI’s later courses.
