Financial Accounting

Basic Accounting Concepts

In this module you will learn about basic accounting concepts.

The goals of financial reporting.
The components of and relationships among the income statement, balance sheet, and cash flow statement.
The additional sources of information accompanying the financial statements including the Management Discussion and Analysis (MD&A) section and financial footnotes.
The role of the auditor and the meaning of the audit opinion.
Revenue recognition methods and the matching principle.
Management manipulation of earnings.
Selecting the appropriate revenue recognition method.
The types and analysis of unusual or infrequent items, discontinued operations, extraordinary items and accounting changes.

In this module you will learn about the corporate income statement and the statement of stockholders' equity. The key points covered are:

Key items in revenues and expenses
Various definitions of profit
How the income statement is related to the balance sheet
Effect of discontinued segments, extraordinary items, and changes in accounting principles and estimates.
Stock dividends and stock splits and the effects of each on a company's assets and shareholders' equity.

In this module you will learn about the corporate balance sheet. The key points covered are:

In this module you will learn about the statement of cash flows. The key points covered are:

Why cash flow information is important to investment decision making.
The information in a statement of cash flows and the methods used to disclose non-cash account balances.
How to calculate, using the indirect method, the net cash provided or used by operating activities.
The statement of cash flows using the indirect method.
How to calculate, using the direct method, the net cash provided or used by operating activities.

Click here to view the Inmarkets Finance library