Accounting Fundamentals

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Accounting fundamentals course overview

This free 2-part accounting fundamentals course will guide you through the accounting process. We explore the layout of the balance sheet, income statement, and cash flow statement; and demonstrate how to prepare financial statements from scratch. This free accounting course is an essential building block required for performing financial modeling and other types of wall street financial analysis.

Constructing an income statement and balance sheet

In the first module of this free accounting course, we explore the layout of the balance sheet and income statement, explore how transactions are recorded, and prepare a simple balance sheet and income statement. By the end of this module, you will have a solid understanding of how to construct a balance sheet and income statement.

  • Explain the format of the income statement and balance sheet
  • Define various financial statement terms (e.g. accounts receivable, prepayments, etc.)
  • Record financial statement transactions (e.g. invoicing, raising equity, buying inventory, etc.)
  • Prepare a simple income statement and balance sheet

Constructing a cash flow statement

In this second module of this free accounting course, we explore the layout of the cash flow statement, explain the differences between the cash flow statement and the income statement, and prepare a cash flow statement from scratch. By the end of this module, you will have a solid understanding of how to construct a cash flow statement.

  • Outline the format of the cash flow statement
  • Explain the difference between profit and cash
  • Prepare a simple cash flow statement using the balance sheet and income statement

Who should take this free accounting course?

This free online accounting course is designed for anyone who wants to review the fundamentals and building blocks of the accounting process.  This class will also be useful for professionals who work in finance and want to review the concepts required for financial modeling and valuation in ITA’s later courses.