Financial Accounting

Complete syllabus

Every chapter and lesson

1. 01

   Chapter 1 · 2 lessons

   Introduction to Financial Accounting

   1. 1.1

      About the Authors

      6 min · Quick check

      Lesson goal: By the end you can understand the backgrounds and contributions of the authors in the field of financial accounting.

      • Identify the authors of the course and their qualifications.
      • Discuss the significance of their work in financial accounting.
      • Explain how their experiences shape the course content.
   2. 1.2

      Current Evolution in Financial Accounting

      6 min · Quick check

      Lesson goal: By the end you can describe the current trends and changes in financial accounting practices.

      • Define financial accounting and its importance in business.
      • Identify recent developments in financial accounting standards.
      • Discuss the impact of technology on financial accounting practices.
2. 02

   Chapter 2 · 2 lessons

   Understanding Financial Data

   1. 2.1

      Creating a Portrait of an Organization

      6 min · Quick check

      Lesson goal: By the end you can describe how to create a financial portrait of an organization using key financial data.

      • Define what a financial portrait is and its importance.
      • Identify key financial statements used in creating a financial portrait.
      • Explain how to analyze financial ratios to assess organizational health.
      • Discuss the role of stakeholders in interpreting financial data.
   2. 2.2

      Communication in Financial Reporting

      6 min · Quick check

      Lesson goal: By the end you can explain the importance of communication in financial reporting and its impact on stakeholders.

      • Define financial reporting and its purpose.
      • Identify the key components of effective financial communication.
      • Explain the significance of transparency and clarity in financial reports.
      • Discuss the impact of financial reporting on stakeholder decision-making.
3. 03

   Chapter 3 · 2 lessons

   Income Statements

   1. 3.1

      Construction of an Income Statement

      6 min · Quick check

      Lesson goal: By the end you can construct an income statement using appropriate financial data.

      • Define an income statement and its purpose in financial reporting.
      • Identify the components of an income statement, including revenues and expenses.
      • Explain the format and structure of an income statement.
      • Demonstrate how to calculate net income from revenues and expenses.
   2. 3.2

      Reported Profitability and Conservatism

      6 min · Quick check

      Lesson goal: By the end you can analyze reported profitability and understand the concept of conservatism in financial reporting.

      • Define reported profitability and its significance in evaluating a company's performance.
      • Discuss the principle of conservatism in accounting and its impact on income reporting.
      • Identify how conservatism can affect the recognition of revenues and expenses.
      • Analyze examples of reported profitability under conservative accounting practices.
4. 04

   Chapter 4 · 2 lessons

   Transaction Analysis

   1. 4.1

      Essential Role of Transaction Analysis

      6 min · Quick check

      Lesson goal: By the end you can explain the essential role of transaction analysis in financial accounting.

      • Define transaction analysis and its importance in accounting.
      • Identify the components of a financial transaction.
      • Explain how transaction analysis impacts financial statements.
   2. 4.2

      Connection of the Journal and the Ledger

      6 min · Quick check

      Lesson goal: By the end you can describe the connection between the journal and the ledger in accounting.

      • Define the journal and ledger in the context of accounting.
      • Explain the process of recording transactions in the journal.
      • Describe how transactions are posted from the journal to the ledger.
      • Discuss the importance of maintaining accurate journals and ledgers.
5. 05

   Chapter 5 · 2 lessons

   Adjusting Entries

   1. 5.1

      Purpose of Adjusting Entries

      6 min · Quick check

      Lesson goal: By the end you can explain the purpose of adjusting entries in financial accounting.

      • Adjusting entries are necessary to ensure that revenues and expenses are recognized in the period they occur.
      • They help in aligning the financial statements with the accrual basis of accounting.
      • Adjusting entries are made at the end of an accounting period before preparing financial statements.
   2. 5.2

      Types of Adjustments

      6 min · Quick check

      Lesson goal: By the end you can identify and describe the different types of adjustments used in financial accounting.

      • There are four main types of adjustments: accruals, deferrals, estimates, and reclassifications.
      • Accruals involve recognizing revenues and expenses that have occurred but are not yet recorded.
      • Deferrals involve postponing the recognition of revenues or expenses that have been received or paid in advance.
6. 06

   Chapter 6 · 2 lessons

   Securities and Exchange Commission

   1. 6.1

      Need for the SEC

      6 min · Quick check

      Lesson goal: By the end you can explain the necessity of the Securities and Exchange Commission in the financial markets.

      • Define the Securities and Exchange Commission (SEC) and its primary purpose.
      • Discuss the role of the SEC in protecting investors.
      • Explain how the SEC promotes fair and efficient markets.
   2. 6.2

      Impact of Audits on Financial Statements

      6 min · Quick check

      Lesson goal: By the end you can analyze how audits influence the reliability of financial statements.

      • Define what an audit is and its significance in financial reporting.
      • Describe the relationship between audits and the credibility of financial statements.
      • Examine the impact of audit findings on investor confidence.
7. 07

   Chapter 7 · 2 lessons

   Accounts Receivable

   1. 7.1

      Net Realizable Value

      6 min · Quick check

      Lesson goal: By the end you can define Net Realizable Value and explain its importance in accounting.

      • Define Net Realizable Value as the estimated selling price of an asset in the ordinary course of business minus any costs of completion, disposal, and transportation.
      • Discuss the significance of Net Realizable Value in evaluating accounts receivable.
      • Identify how Net Realizable Value affects financial statements and decision-making.
   2. 7.2

      Accounting for Uncollectible Accounts

      6 min · Quick check

      Lesson goal: By the end you can explain the accounting treatment for uncollectible accounts and apply the allowance method.

      • Define uncollectible accounts and the allowance method of accounting.
      • Explain the process of estimating uncollectible accounts and recording the necessary journal entries.
      • Discuss the impact of uncollectible accounts on financial statements and cash flow.
      • Apply the allowance method through examples and practice problems.
8. 08

   Chapter 8 · 2 lessons

   Inventory Accounting

   1. 8.1

      Cost Flow Assumptions

      6 min · Quick check

      Lesson goal: By the end you can explain the different cost flow assumptions used in inventory accounting.

      • Define cost flow assumptions and their importance in financial reporting.
      • Identify the three main cost flow assumptions: First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and Weighted Average Cost.
      • Discuss the impact of each cost flow assumption on financial statements and tax liabilities.
   2. 8.2

      Periodic vs. Perpetual Inventory Systems

      6 min · Quick check

      Lesson goal: By the end you can differentiate between periodic and perpetual inventory systems.

      • Define periodic and perpetual inventory systems.
      • Explain how inventory is tracked in each system.
      • Discuss the advantages and disadvantages of periodic versus perpetual inventory systems.
9. 09

   Chapter 9 · 2 lessons

   Property and Equipment

   1. 9.1

      Reporting Property and Equipment

      6 min · Quick check

      Lesson goal: By the end you can explain how to report property and equipment in financial statements.

      • Define property and equipment.
      • Identify the components of property and equipment reporting.
      • Explain the importance of accurate reporting for stakeholders.
   2. 9.2

      Determining Historical Cost and Depreciation

      6 min · Quick check

      Lesson goal: By the end you can calculate historical cost and depreciation for property and equipment.

      • Define historical cost and its significance.
      • Explain the concept of depreciation and its methods.
      • Calculate depreciation using straight-line and declining balance methods.
10. 10

    Chapter 10 · 2 lessons

    Investments

    1. 10.1

       Accounting for Investments by the Equity Method

       6 min · Quick check

       Lesson goal: By the end you can explain the Equity Method of accounting for investments in other companies.

       • Define the Equity Method and its purpose in accounting.
       • Identify when to apply the Equity Method based on ownership percentage.
       • Explain how to record initial investment and subsequent income or losses.
       • Discuss the impact of dividends on the investment account under the Equity Method.
    2. 10.2

       Acquisition of Another Company

       6 min · Quick check

       Lesson goal: By the end you can describe the process of acquiring another company and its accounting implications.

       • Define business acquisition and its significance in financial accounting.
       • Identify the different methods of acquiring another company, including stock purchases and asset purchases.
       • Explain how to account for goodwill and other intangible assets during an acquisition.
       • Discuss the impact of acquisitions on financial statements and reporting requirements.