Want to learn a new language and keep your finger on the pulse of business? Accounting is the language of business. Be among a small percentage of business professionals who can prepare, interpret, and analyze financial statements of corporations. You will find financial accountants anywhere from the accounting department to the positions of CEO and CFO.
In this course, part of the UMUC Accounting and Financial Management MicroMasters program, you will learn to prepare corporate financial statements in compliance with the U.S. Securities and Exchange Commission (SEC) and in conformance with the Financial Accounting Standards Board’s (FASB) generally accepted accounting principles (GAAP).
You will learn how the FASB creates new GAAP, how to research the FASB Accounting Standards Codification system, and how to prepare and analyze financial statements including the Income Statement, Comprehensive Statement of Income, Balance Sheet, Statement of Shareholder’s Equity, and Statement of Cash Flows. An overview of accounting theory provides a foundation for applying financial accounting concepts and principles to real business issues. The course is taught within the framework of the American Association of Certified Public Accountants’ Code of Professional Conduct.
Week 1: Overview of Financial Accounting, FASB’s Codification, FASB’s Conceptual Framework, and a review of accounting principles
Learn how FASB’s Conceptual Framework helps to inform the development of future GAAP, use the FASB Codification system to research accounting topics, and review accounting principles. Review accounting principles used to prepare the four required financial statements of publically held corporations.
Week 2: Income Statement and Statement of Comprehensive Income
Learn FASB’s new revenue recognition rules. Further, learn to prepare an Income Statement and Statement of Comprehensive Income.
Week 3: Balance Sheet: Current Assets
The Balance Sheet is used to report assets, liabilities, and equities. Learn how corporate leaders measure and report current assets including cash, receivables, and inventory. Further, learn how companies collect or sell their receivables to pay for operating expenses.
Week 4: Fixed and Intangible Assets
Learn how accountants measure and report property, plant, and equipment; and intangible assets. Further, you will learn to compute deprecation and amortization for plant, equipment, and all relevant intangible assets. You will also learn how accountants assess intangible assets for impairment and consider implementing the optional fair value option.
Week 5: Balance Sheet: Liabilities and Equities
Learn how to account for current liabilities, contingencies, and equities. You will review and expand your understanding of time value of money concepts to value bonds and other long-term liabilities. You will also learn how to determine the equivalent of one’s net worth for a corporation and how to compute earnings per share; a ratio investors use to compare alternative investments.
Week 6: Statement of Cash Flows
Learn how managers and investors use the statement of cash flows to make important decisions regarding the operational efficiencies of a company, its investments, and various financing opportunities. You will learn to prepare the Statement of Cash Flows using both the direct and indirect methods.
Week 7: Notes to Financial Statements and Accounting for Changes and Errors
Investors read the notes to financial statements to gain an in depth understanding of how a corporation applies accounting principles, calculates estimates, and other important issues that do not appear on the face of financial statements. You will learn how to correct errors in measuring and reporting of financial information.
Week 8: Final Exam