Accrual basis and adjusting entries: prepaids, depreciation, unearned revenue, accruals
Cash flow statement: operating (direct/indirect), investing, and financing activities
Merchandising accounting: perpetual vs periodic systems, COGS, and inventory purchases account
Inventory valuation and analysis: FIFO/LIFO/WA, lower of cost or market, turnover & days in inventory
Long-term liabilities and bonds: notes payable, PV pricing, and effective interest amortization
Equity and performance metrics: stock effects, EPS, P/E, dividend yield, and book value per share
Investments in debt/equity securities: trading reporting, cost method, and equity method
Partnership accounting: formation, income allocation, partner admission/withdrawal, liquidation
Time value of money: PV/FV of single sums and annuities; key formulas and applications
About the free online course
Financial Accounting is the skill that turns everyday business activity into clear, decision-ready information. In this free online course, you will learn how financial reporting works from the ground up, so you can read, understand, and create the core reports used by companies, investors, and managers. Whether you are exploring a career in business, launching a small venture, or strengthening your professional toolkit, accounting helps you speak the language that organizations use to measure performance, manage resources, and communicate results.
You will start by building strong foundations: why accounting matters, what principles shape trustworthy reporting, and how standard-setters and regulators influence the rules companies follow. From there, you will develop practical judgment using the accounting equation and the logic behind recording transactions. As you progress, you will connect the dots between day-to-day entries and the bigger picture, seeing how ledgers, trial balances, and adjusting entries come together to produce financial statements that reflect what truly happened during a period.
The course emphasizes understanding over memorization. You will learn how timing affects recognition of revenue and expenses, why accrual accounting changes the story compared with cash accounting, and how common scenarios such as prepaid costs, unearned revenue, depreciation, and accruals affect results. You will also gain confidence interpreting key accounts like receivables, notes payable, bonds, and investments, so you can better assess risk, liquidity, and long-term obligations.
By the end, you should be able to follow the flow from transaction analysis through closing entries, understand inventory cost flow concepts, connect operations to cash flows, and interpret what financial ratios and per-share measures suggest about a business. This course is designed to help you think like an accountant, communicate with finance teams, and make smarter decisions using financial information—skills that are valuable across business, marketing, entrepreneurship, and management.
Course content
Video class: What is Accounting ? An Introduction to Accounting.17m
Exercise: Why is accounting often referred to as the 'language of business'?
Video class: What is GAAP? Generally Accepted Accounting Principles.17m
Exercise: What is the primary role of the SEC in relation to financial reporting?
Video class: FASB's Conceptual Framework.13m
Exercise: Which characteristic relates to predicting future cash flows?
Video class: Accounting Principles and Accounting Assumptions.13m
Exercise: Which accounting principle or assumption states that financial transactions should be recorded at their original cost, rather than current market value or estimated worth?
Video class: Accounting Equation: Assets = Liabilities Equity22m
Exercise: How does issuing common stock affect a company's balance sheet?
Video class: Accounting Equation: Assets = liabilities Equity.22m
Exercise: What describes 'accounts receivable' in accounting?
Video class: Analyzing Business Transactions. Financial Accounting Course28m
Exercise: When analyzing a business transaction where equipment is purchased using a credit from a supplier, what is the effect on the components of the accounting equation?
Video class: How to Prepare Financial Statements | Financial Accounting Course12m
Exercise: Which financial statement refers to a specific date?
Video class: Business structure: Partnership Versus Corporation Versus Proprietorship11m
Exercise: Which business structure provides limited liability and avoids corporate income tax?
Video class: Accounting Basics: Accounts, General Ledger and Chart of Accounts.29m
Exercise: A company receives an advanced payment from a customer for services to be provided in the future. Which account should change upon receiving the payment?
Video class: T Accounts: Debit and Credit Simplified.17m
Exercise: What is the normal balance of an accounts receivable account?
Video class: How to Prepare Journal Entries and Post to General Ledger.34m
Exercise: What happens to cash and common stock when an investment is made by the owner?
Video class: Adjusting Journal Entries: Example. FAR CPA Exam.14m
Exercise: In accounting, if a company pays for a 4-year insurance policy in advance, how should the initial journal entry be recorded?
Video class: Trial Balance Explained. Basic Accounting Course06m
Exercise: What is the primary purpose of a trial balance in accounting?
Video class: Introduction to Adjusting Entries | Financial Accounting20m
Exercise: What is the basis of financial statements when revenues are recognized as generated and expenses as incurred?
Video class: Prepaid Expenses | Deferral of Expense | Financial Accounting16m
Exercise: When a company pays for a service in advance and records it as a prepaid expense, what happens over time as the benefit from this prepaid expense is used?
Video class: Depreciation expense and Accumulated Depreciation. Financial Accounting17m
Exercise: What is the purpose of depreciation in accounting?
Video class: Unearned Revenues or Deferred Revenues. Financial Accounting.10m
Exercise: How much revenue should be recognized by December 31st for a $12,000 subscription received on July 1st?
Video class: Accrued expenses14m
Exercise: Which of the following best describes accrued expenses and their treatment in financial accounting?
Video class: Accrued Revenues. Financial Accounting11m
Exercise: How should accrued revenue be recorded when cash is received later?
Video class: New Revenue Recognition Adjusting Entries | Financial Accounting Course | CPA Exam FAR ch 5 p212m
Video class: Introduction to Account Receivables | Financial Accounting Course | CPA Exam FAR ch 7 p 112m
Exercise: In financial accounting, what does an account receivable represent?
Video class: Accounting for Long Term Notes Payable | Non Current Liabilities | Financial Accounting Course10m
Exercise: What is a key characteristic of long-term notes payable?
Video class: Debt Ratio explained | Different Types of Bonds | Financial Accounting Course | CPA Exam FAR11m
Video class: How to Find the Price (Present Value) of a Bond? CPA Exam. www.farhatlectures.com17m
Video class: Bond Amortization: Effective Interest Method. CPA exam13m
Exercise: What is the main purpose of using the effective interest amortization method for bonds?
Video class: Earnings Per Share Price Earnings Ratio Dividend Yield Financial Accounting CPA Exam18m
Video class: Book value Per share Explained | Financial Accounting Course | CPA Exam FAR13m
Exercise: What is the book value per common share primarily used for in financial accounting?
Video class: Comprehensive Example Statement of Cash Flows | CPA Simulations | CPA Exam FAR24m
Video class: Introduction to Accounting for Investments | Financial Accounting | CPA Exam FAR12m
Video class: Accounting for Investment in Debt Securities | Financial Accounting | CPA Exam FAR19m
Exercise: How are trading securities typically reported in financial statements?
Video class: Investment In Equity Securities | Cost method | Financial Accounting | CPA Exam FAR18m
Video class: Equity method of Accounting Simplified | Financial Accounting | CPA Exam FAR15m
Video class: Introduction to Partnership | Types and Characteristics of Partnerships Financial Accounting Course17m
Video class: Allocation Net Income Among Partners | Financial Accounting Course | CPA Exam FAR17m
Video class: Admission of a New Partner | Financial Accounting Course | CPA Exam FAR16m
Exercise: When a new partner is admitted to a partnership and pays more for their partnership interest than the actual book value of the interest received, where does the excess payment go?
Video class: Accounting for Withdrawal of a Partner | Financial Accounting Course | CPA Exam15m
Video class: Liquidation of a Partnership | Financial Accounting Course | CPA Exam FAR17m
Video class: Present Value of Single Amount Explained with Examples | Financial Accounting Course | CPA Exam FAR35m
Exercise: What is the present value of $50,000 needed in five years if the annual interest rate is 8%?
Video class: Future Value of a single amount | Time Value of Money | Financial Accounting Course | CPA Exam FAR21m
Video class: Present value of Ordinary Annuity With Examples | Time Value of Money | Financial Accounting Course40m
Video class: Future Value of an Annuity | Time Value of Money | Financial Accounting Course CPA Exam FAR15m
Exercise: What is the formula to calculate the future value of an ordinary annuity?
Video class: Present Value of an Annuity. Time Value of Money Example | | CPA Exam FAR16m
Video class: Lower of Cost or Market. LCM09m
Video class: Inventory Turnover and Days Sales in Inventory.14m
Exercise: In the context of inventory management, what does a high inventory turnover ratio indicate?
Video class: Investing Activities: Statement of Cash Flows13m
Video class: Financing Activities: Statement of Cash Flows16m
Video class: Operating Section: Direct Method Statement of Cash Flows.29m
Exercise: When preparing the operating section of the statement of cash flows using the direct method, what is the primary focus in calculating cash flows?
Video class: Operating Section Statement of Cash Flows36m
Video class: Closing Process. Financial Accounting20m
Video class: The 10 Columns Accounting worksheet. Financial Accounting13m
Exercise: What is the primary purpose of using a worksheet in accounting?
Video class: Classified Balance Sheet16m
Video class: Accounting for Merchandising operation29m
Video class: Accounting for Selling Merchandising Inventory. Financial Accounting Course.22m
Exercise: When using the perpetual inventory system, which two aspects must be recognized when a sale is made?
Video class: Closing Entries for Merchandisers.09m
Video class: Single and Multiple Steps Income Statement. Financial Accounting Course11m
Video class: Periodic Inventory System Versus Perpetual Inventory. Journal Entries.26m
Exercise: In a periodic inventory system, what type of account is used to record the cost of goods purchased during the accounting period?
Video class: Accounting for the Cost of Inventory. Financial Accounting Couse19m
Video class: FIFO LIFO Weighted Average Inventory Cost Flow Methods47m
Video class: Introduction to Internal Control. Financial Accounting.22m
Exercise: What is NOT a primary objective of internal control within a company?
