Topics


Below are the topics contained within each lesson of our courses. Take a look.


Free Introduction to Accounting Course

Introduction to Business and Financial Accounting:

  • What is a business?
  • What are the keys to a successful business?
  • What is business capital and why is it necessary?
  • What options exist in accessing needed capital for a business?
  • What information do providers of capital need in their investment decisions?
  • Financial vs. managerial accounting.
  • General-purpose financial statements.
  • What are the key characteristics found in useful financial statement information?
  • What is GAAP?
  • What is the role of the SEC, FASB and the AICPA in the providing of useful information to providers of business capital?
  • International standards and the IASB.
  • What is the role of a CPA and an independent audit in the providing of useful information to providers of capital?
  • Why is accounting worth studying?
  • What distinguishes a corporation, partnership and proprietorship as legal forms of doing business?

General-Purpose Financial Statements:

  • The balance sheet and basic accounting equation.
  • Assets, liabilities and owners’ equity defined.
  • Contributed capital, retained earnings and dividends defined.
  • The income statement.
  • Revenues and expenses defined.
  • The expanded accounting equation.
  • Financial statement articulation.
  • The statement of cash flows.
  • The statement of retained earnings.
  • A classified balance sheet
  • Key concepts and principles:
    • Historical cost
    • Conservatism
    • Monetary measurement
    • Entity Concept

Accounting Cycle:

  • An accounting system.
  • Steps in an accounting system designed to produce financial statements:
    • Identify transactions
    • Analyze transactions
    • Record transactions:
      • Journal entries
      • Debits/Credits
    • Posting to general ledger
    • Trial balance
    • Adjusting entries:
      • Cash vs. accrual basis accounting
      • Prepayments of expenses:
      • Collection of revenues in advance:
      • Accruing expenses
      • Accruing revenues
    • Closing entries
    • Preparation of financial statements
  • Account analysis

Accounting Cycle:

  • An accounting system.
  • Steps in an accounting system designed to produce financial statements:
    • Identify transactions
    • Analyze transactions
    • Record transactions:
      • Journal entries
      • Debits/Credits
    • Posting to general ledger
    • Trial balance
    • Adjusting entries:
      • Cash vs. accrual basis accounting
      • Prepayments of expenses:
      • Collection of revenues in advance:
      • Accruing expenses
      • Accruing revenues
    • Closing entries
    • Preparation of financial statements
  • Account analysis
Special journals and subsidiary ledgers are introduced and a manual accounting system is set up for a fictional company. Students complete all steps of the accounting cycle for a series of transactions including the preparation of financial statements. (These financial statements are then subject to ratio analysis in a later lesson focusing on the determination of a reasonable stock value for the company.) NOTE: Students are told that although this kind of manual system is seldom used in today’s world, most computerized systems are programmed to follow the same flow of information. For that reason, this is a worthwhile exercise, but not the kind of thing accountants actually do.

Financial Accounting Course:

Introduction to Business and Financial Accounting:

  • What is a business?
  • What are the keys to a successful business?
  • What is business capital and why is it necessary?
  • What options exist in accessing needed capital for a business?
  • What information do providers of capital need in their investment decisions?
  • Financial vs. managerial accounting.
  • General-purpose financial statements.
  • What are the key characteristics found in useful financial statement information?
  • What is GAAP?
  • What is the role of the SEC, FASB and the AICPA in the providing of useful information to providers of business capital?
  • International standards and the IASB.
  • What is the role of a CPA and an independent audit in the providing of useful information to providers of capital?
  • Why is accounting worth studying?
  • What distinguishes a corporation, partnership and proprietorship as legal forms of doing business?

General-Purpose Financial Statements:

  • The balance sheet and basic accounting equation.
  • Assets, liabilities and owners’ equity defined.
  • Contributed capital, retained earnings and dividends defined.
  • The income statement.
  • Revenues and expenses defined.
  • The expanded accounting equation.
  • Financial statement articulation.
  • The statement of cash flows.
  • The statement of retained earnings.
  • A classified balance sheet
  • Key concepts and principles:
    • Historical cost
    • Conservatism
    • Monetary measurement
    • Entity Concept

Accounting Cycle:

  • An accounting system.
  • Steps in an accounting system designed to produce financial statements:
    • Identify transactions
    • Analyze transactions
    • Record transactions:
      • Journal entries
      • Debits/Credits
    • Posting to general ledger
    • Trial balance
    • Adjusting entries:
      • Cash vs. accrual basis accounting
      • Prepayments of expenses:
      • Collection of revenues in advance:
      • Accruing expenses
      • Accruing revenues
    • Closing entries
    • Preparation of financial statements
  • Account analysis
Special journals and subsidiary ledgers are introduced and a manual accounting system is set up for a fictional company. Students complete all steps of the accounting cycle for a series of transactions including the preparation of financial statements. (These financial statements are then subject to ratio analysis in a later lesson focusing on the determination of a reasonable stock value for the company.) NOTE: Students are told that although this kind of manual system is seldom used in today’s world, most computerized systems are programmed to follow the same flow of information. For that reason, this is a worthwhile exercise, but not the kind of thing accountants actually do.

Sales Revenues and Receivables:

  • Sales (cash) discounts
  • Sales returns and allowances
  • Gross margin % and % markup
  • Uncollectible accounts receivable:
    • % of ending A/R and aging methods
  • Credit card sales

Cost of Goods Sold and Inventory:

  • Perpetual inventory accounting for purchases, discounts, returns and sales
  • Inventory costing methods:
    • Specific identification
    • Cost flow assumptions (FIFO, LIFO, MWA):
    • Comparison of affects of different cost flow assumptions
  • Physical inventory

Internal Controls:

  • Definition and Importance
  • Examples

Employee Compensation and Taxes:

  • Employee salaries and wages
  • Employer payroll taxes
  • State sales taxes
  • Property taxes
  • Multi-step formatted income statement

Long-Term Assets:

  • Capitalized costs vs. expenses
  • Property, plant and equipment:
    • Acquisition
    • Depreciation: Straight-line and units-of-production methods
    • Sale and disposal
    • Repairs and maintenance
    • Improvements
  • Intangible assets:
    • Acquisition
    • Research and development costs
    • Amortization
    • Goodwill accounting
  • Natural resources:
    • Acquisition
    • Depletion

Long-Term Liabilities:

  • Basic notes payable
  • Mortgage notes payable
  • Building equity in real estate
  • Bonds:
    • Kinds of bonds
    • Common characteristics
    • Issued at face value

Owners’ Equity:

  • Issuance of common and preferred stock
  • Dividends distributions on preferred and common.
  • Accounting for cash dividends

Financial Statement Analysis:

  • Users of financial statements
  • Liquidity Analysis:
    • Current ratio
    • Quick (acid-test) ratio
  • Asset management:
    • A/R turnover
    • Number of day’s sales in A/R
    • Inventory turnover
    • Number of day’s sales in inventory
  • Leverage measures:
    • Debt ratio (debt to total assets)
    • Debt to equity ratio
  • Performance analysis:
    • EPS
    • Dividends per share
    • Dividend payout ratio
  • Stock valuation:
    • P/E ratio
    • Book value per share
  • Profit projections:
    • Vertical and horizontal analysis

Review of Accounting Environment and Basic Accounting Cycle.

Expanded Financial Statement Analysis:

  • Technical and fundamental analysts
  • Liquidity Analysis:
    • Working capital
  • Financing operations:
    • A/P turnover
    • Number of day’s purchases in A/P
    • Operating cycle and financing operations
    • Use of statement of cash flows
  • Leverage measures:
    • Times interest earned
  • Performance analysis:
    • Return on assets
    • Return on equity
    • DuPont formula for ROE
    • Dividend yield
    • Stockholder return on investment
  • Stock valuation:
    • Market capitalization
    • Book value

The Statement of Cash Flows:

  • Usefulness of statement in analysis
  • Preparation of statement:
    • Direct method
    • Indirect method
  • Bank reconciliation

Sales and Receivables:

  • Revenue recognition issues (expanded):
    • FOB destination
    • Shipping Point Consignment
    • Long-term contracts
    • Guarantees
  • Uncollectible accounts receivable:
    • % of net credit sales revenues method
  • Trade notes receivable
  • Factoring A/R and Discounting N/R
  • Sales denominated in a foreign currency

Cost of Goods Sold and Inventory:

  • Cost of Goods Sold and Inventory:
  • Periodic inventory accounting for purchases, discounts, returns and sales
  • Periodic inventory accounting using FIFO, LIFO and Weighted Average
  • Gross margin method of estimating inventory
  • Effect of inventory errors
  • Lower of cost or market valuations

Accounting for Employee Compensation, Taxes, Contingencies and Other Items:

  • Employee benefits:
    • Health insurance
    • Compensated absences
    • Bonuses
    • Stock options
    • Pension plans
    • Other post-retirement benefits
  • Income taxes (current and deferred)
  • Contingencies
  • Warranty obligations
  • Other income statement items:
    • Extraordinary items
    • Discontinued operations
    • Changes in accounting principles
    • Restructuring charges

The Time Value of Money:

  • PV and FV of single cash flows
  • PV and FV of annuities
  • PV and FVs with uneven cash flows

Long Term Assets:

  • Property, plant and equipment:
    • Basket purchases
    • Self-constructed assets
    • Operating and capital leases
  • Depreciation:
    • Accelerated methods
  • Intangible assets:
    • Advertising costs
  • Asset valuations and asset impairment

Bond Financing:

  • Bonds:
    • Issued at premium and discount:
      • Calculating issuance price
      • Straight-line amortization
      • Effective-interest amortization
    • Early retirement

Equity Financing:

  • Stock dividends
  • Stock splits
  • Treasury stock transactions
  • Statement of retained earnings
  • Prior-period adjustments
  • Statement of owners’ equity
  • Other comprehensive income items
  • Equity financing in proprietorships and partnerships

Investments in Equity and Debt Securities:

  • Why companies invest in other companies
  • Accounting for investments in equity securities:
    • Trading securities
    • Available-for-sale securities
    • Equity method
    • Consolidated financial statements
  • Accounting for investments in debt securities:
    • Trading securities
    • Available-for-sale securities
    • Held-to-maturity

Managerial Accounting Course

Introduction to Managerial Accounting:

  • The purpose of managerial accounting
  • Distinguishing characteristics of managerial vs. financial accounting

Cost Accounting:

  • Product vs. period costs in merchandising and manufacturing businesses
  • Flow of product costs in a manufacturing business
  • Job order cost system:
    • Basic entries and use of job cost record
    • Manufacturing overhead issues and accounting

Cost Behaviors with changing volume:

  • Variable, fixed, stepped and mixed costs defined
  • Analysis of mixed costs:
    • Scatter graph method
    • High-low method
  • Contribution margin income statement

CVP Analysis:

  • Equational approach
  • Graphical approach

Budgeting:

  • Strategic, capital and operational budgeting introduced
  • The benefits of budgeting
  • Operating budgets for a manufacturing business

Non-Routine Business Decision Making:

  • Quantitative vs. qualitative factors
  • Relevant, differential, direct, sunk and opportunity costs defined
  • Examples of relevant costs in non-routine decisions:
    • Make or buy a component part
    • Pricing a special order
    • Add or eliminate a product or process
    • Additional product processing
    • Product emphasis given a critical limited resource
  • Defining the Balanced Scorecard
  • Scorecard Perspectives
  • Users of the Balanced Scorecard
  • Evolution of the Balanced Scorecard
  • Components of the Balanced Scorecard

Review of Introduction to Managerial Accounting

Review of Cost Accounting

Cost Accounting, continued:

  • Process cost system:
    • Basic entries
    • Equivalent Units
  • Product cost accumulation in a merchandising business
  • Product costing in a service business

Activity-based costing (ABC)

  • Traditional vs. ABC approach
  • Analyze individual overhead costs
  • Overhead cost activities
  • Cost drivers
  • Assigning overhead
  • Using ABC data to make decisions

Standard Costs and Performance Evaluation:

  • Responsibility accounting
  • Standard costing
  • Cost variances
  • Activity-based costing (ABC)

Review and Expansion of CVP Analysis:

  • Analysis of mixed costs and the least squares method
  • Change in sales mix
  • Operating leverage
  • Strategic, capital and operational budgeting introduced
  • The benefits of budgeting
  • Operating budget for:
    • Manufacturing business
    • Merchandising business
    • Service business
  • Capital budgeting:
    • Payback method
    • IRR method
    • NPV method
    • Lease vs. buy
      • Sensitivity analysis
    • Screening and ranking
    • Income tax effects

Bonus Lessons:

  • The Importance of Financial Accounting In U.S. and Global Economies (Bundled with Course #1 for free)
  • Business Fraud, Ethics, and the Accounting Profession
  • Managerial Accounting: Current Trends In Practice and Career Opportunities
  • Key Elements in Successful Personal Financial Planning

*Bonus lessons are available when both Financial and Managerial courses are purchased together.