COURSE OUTLINE: This course is intended for first-time students of financial accounting at undergraduate or graduate level or those who have been exposed to financials terms but haven't had a chance to learn in a structured manner. Through well-curated content that progressively builds on conceptual learning, the course will enable a student to read and analyze financial statements of a business. The focus is to train the student on principles of accounting that drive preparation and presentation of financial statements. At the end of this course, a student will be able to understand how financial data is generated and how it can be converted into useful strategic information for stakeholders in a business.
Overview
Syllabus
Introduction to the course - Financial Accounting.
1.1 Introduction to Financial Accounting.
1.2 Company form of business.
1.3 Accounting as an information system.
1.4 Key accounting terms I.
1.4 Key accounting terms II.
1.5 Tutorial - Key accounting terms.
1.6 Accounting Equation.
1.7 Walkthrough of Balance Sheet I.
1.8 Walkthrough of Balance Sheet II.
1.9 Walkthrough of Balance Sheet III.
1.10 Walkthrough of Income Statement I.
1.11 Generally Accepted Accounting Principles I.
1.12 Generally Accepted Accounting Principles II.
2.0. Recap and way forward.
2.1 Types of Accounts.
2.2 Tutorial - Types of Accounts (Part I).
2.2 Tutorial - Types of Accounts (Part II).
2.3 Debit and Credit.
2.4 Tutorial - Debit and Credit.
2.5 Rules of debit and credit.
2.6 Entering transactions in Journal (Part I).
2.6 Entering transactions in Journal (Part II).
2.6 Entering transactions in Journal (Part III).
2.7 Tutorial - Entering transactions in Journal I (Part I).
2.7 Tutorial - Entering transactions in Journal I (Part II).
2.7 Tutorial - Entering transactions in Journal I (Part III).
2.8 Key Trends in Journalizing.
2.9 Journalizing complex transactions.
2.10 Practice Problem I.
3. Recap and way forward.
3.1 Introduction to Ledger.
3.2 Process of Ledger Posting (Part 1).
3.2 Process of Ledger Posting (Part 2).
3.2 Process of Ledger Posting (Part 3).
3.3 Balancing the Accounts.
3.4 Debit and Credit Balances.
3.5 Tutorial - Identifying balances (Part 1).
3.5 Tutorial - Identifying balances (Part 2).
3.5 Tutorial - Identifying balances (Part 3).
3.5 Tutorial - Identifying balances (Part 4).
3.8 Practice Problem I.
3.8 Practice Problem II.
3.8 Practice Problem III.
4.0 Recap and way forward.
4.1 Introduction to Trial Balance.
4.2 Preparation of Trial Balance.
4.3 Practice Problem 1.
4.4 Practice Problem 2.
4.5 Errors in Trial Balance.
5.0 Recap and way forward.
5.1 Introduction to Final Accounts.
5.2 Tutorial - Identifying direct and indirect expenses.
5.3 Tutorial - Mapping operating and non operating items to direct and indirect items.
5.4 Preparation of Final Accounts.
5.5 Tutorial - Preparation of Final Accounts.
5.6 Tutorial - Preparation of Trading Account.
5.7 Tutorial - Preparation of P&L Account.
5.8 Tutorial - Preparation of Balance Sheet.
5.9 Practice Problem.
5.10 Adjustments in Final Accounts.
5.11 Transactions to be adjusted in Final Accounts (part 1).
5.11 Transactions to be adjusted in Final Accounts (part 2).
5.12 Tutorial - Adjustments in Final Accounts.
5.13 Tutorial -Calculating Cost of Goods Sold.
5.14 Tutorial -Outstanding Expenses.
5.15 Tutorial - Prepaid Expenses.
5.16 Validating the learning - Balance Sheet.
5.17 Validating the learning - Income Statement.
6.0 Recap and way forward.
6.1 Introduction to Financial Statement Analysis.
6.2 Liquidity Ratios.
6.3 Tutorial - Liquidity Ratios.
6.4 Solvency Ratios.
6.5 Tutorial - Solvency Ratios.
6.6 Profitability Ratios.
6.7 Tutorial - Profitability Ratios (Part 1).
6.7 Tutorial - Profitability Ratios (Part 2).
6.8 Efficiency Ratios.
6.9 Tutorial - Efficiency Ratios.
6.10 Validating the learning - Walkthrough of RIL's Annual Report.
6.11 Online Resources for Financial Analysis.
6.12 Practice Problem: Liquidity Position.
6.13 Practice Problem – Solvency Position.
6.14 Practice Problem - Profitability Position.
6.15 Practice Problem - Profitability Position.
6.16 Practice Problem – Interpretation of Ratios.
6.17 Practice Problem – Arithmetic problems.
7.0 Recap and way forward.
7.1 Types of Cash Flows.
7.2 Tutorial - Types of Cash Flows.
7.3 Walkthough of Cash Flow Statement of RIL.
7.4 Profit and Loss Appropriation Account.
7.5 Cash Flows from Operating Activities (Part I).
7.5 Cash Flows from Operating Activities (Part 2).
7.6 Tutorial - Changes in working capital.
7.7 Tutorial - Cash Flows from Operating Activities (Part 1).
7.9 Cash Flows from Investing Activities.
7.10: Tutorial - Cash Flows from Investing Activities.
7.11 Cash Flows from Financing Activities.
7.12 Tutorial - Cash Flows from Financing Activities.
7.13 Preparing Cash Flow Statement.
7.14 Identifying hidden information (Part 1).
7.14 Identifying hidden information (Part 2).
7.14 Identifying hidden information (Part 3).
7.15 Practice Problem (Part 1).
7.15 Practice Problem (Part 2).
8.1 Need of Break Even Analysis.
8.2 Understanding the nature of costs8 2.
8.3 Contribution Margin.
8.4 Tutorial - Contribution.
8.5 Break Even Point.
8.6 Tutorial - Break Even Point.
8.7 Tutorial - Break Even Point.
8.8 Visualizing the Break Even Point.
8.9 Tutorial - Break Even Analysis.
8.10 Case - Break Even Analysis.
9.1 Introduction to Inventory Management.
9.2 Economic Order Quantity.
9.3 ABC Analysis.
9.4 Methods of stock valuation".
Taught by
NPTEL-NOC IITM
