Course Overview
This course will help you distinguish between credits and debits while examining the pros and cons of cash-basis accounting versus accrual accounting. You will use the basic steps of the accounting process to make balancing account entries for a variety of transactions.
You will consider the ethical side of accounting: why promises matter and how that translates to accruals, adjusting closing entries, ensuring the accuracy of your statements, correcting errors and estimates, and what to do when accounting goes wrong. You will examine cash inflows and outflows and then analyze this data to create an accurate depiction of a company's economic reality. This will be crucial information for potential investors, partners, creditors etc. You will know when to use a direct cash flow statement versus an indirect cash flow statement and how to accurately reflect transactions.
You are required to have completed the following course or have equivalent experience before taking this course:
- Foundations of Financial Statements
Key Course Takeaways
- Distinguish a credit from a debit
- Identify the correct location for debits, credits, revenue and expense entries within the balance sheet and income statement
- Compare and contrast cash-basis accounting and accrual accounting (double-entry bookkeeping)
- Make balancing account entries for common business transactions
- Identify and complete the three basic steps in the accounting process: analyzing, journalizing, and posting
- Adjust, report, correct, and make closing entries for accounts at the end of a period
- Classify transactions based on the three types of cash flows: from operations, from investing activities, and from financing activities
- Using the income statement and balance sheet, construct a direct cash flow statement and an indirect cash flow statement
- Determine how each transaction should be reflected on either a direct cash flow statement or an indirect cash flow statement
Download a Brochure
Not ready to enroll but want to learn more? Download the course brochure to review program details.How It Works
Course Author
Who Should Enroll
- Individuals seeking to enter the field of accounting or auditing
- Managers involved in financial forecasting and investments
- Entrepreneurs seeking investors and/or investment opportunities
- Pre-MBA students interested in gaining an accounting background
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