Accounting fundamentals course overview

This 2-part accounting fundamentals course will guide you through the accounting process. We explore the layout of the balance sheet, income statement, and cash flow statement. We will demonstrate how to prepare financial statements from scratch. This 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 module, we explore the layout of the balance sheet and income statement, how transactions are recorded and how to prepare these statements. By the end of this module, you will have a solid understanding of how to:

• 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 the second module, we explore the layout of the cash flow statement and explain the differences between the cash flow statement and the income statement. By the end of this module, you will have a solid understanding of how to:

• 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

Who should take this accounting course?

This 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.