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LinkedIn Learning

Financial Accounting Part 1

via LinkedIn Learning


Find out how to use financial data to drive strategic decision-making. Learn the basics of financial accounting, including analyzing and preparing financial statements.


  • The importance of accounting
1. The Accounting Equation
  • Clay tokens, sheep, and Italy
  • The basic equation
  • Expanded accounting equation: SCF
  • Expanded accounting equation: IS
2. Assets
  • Assets: Planes, trains, and automobiles
  • Definition of an asset
  • Types of assets: Current
  • Types of assets: Long term
3. Liabilities
  • Obligations to suppliers, employees, governments, and customers
  • Definition of a liability
  • Types of liabilities: Current
  • Types of liabilities: Long term
  • Contingent liabilities
4. Owner's Equity
  • Owner's equity: Paid-in capital and retained earnings
  • Definition of equity
  • Book value vs. net worth
  • Other components of owner's equity
5. Financial Statements: Balance Sheet
  • Financial statements: Balance sheet for Walmart
  • Where financial statements come from
  • The Microsoft balance sheet
  • Notes from Microsoft on the balance sheet
  • Limitations of the balance sheet
6. Financial Statements: Income Statement
  • Differences between the balance sheet and the income statement
  • Income statement
  • Components of the income statement
  • Revenues, expenses, gains, and losses
  • Earnings per share
  • The Walmart income statement
7. Financial Statements: Statement of Cash Flows
  • Cash cows
  • Statement of cash flows
  • Statement of cash flows: Examples
8. How Financial Statements Are Made
  • The importance of routine bookkeeping
  • Impact of events on assets and liabilities, part 1
  • Impact of events on assets and liabilities, part 2
  • Impact of events on assets and liabilities, part 3
  • Impact of events on revenues and expenses, part 1
  • Impact of events on revenues and expenses, part 2
  • Impact of events on revenues and expenses, part 3
  • Impact of events on revenues and expenses, part 4
9. Debits and Credits
  • The accuracy of debits and credits in the days of real books
  • Debits and credits
  • Journal entries, part 1
  • Journal entries, part 2
  • Journal entries, part 3
  • T-accounts and posting
  • Trial balance: The raw material for financial statements
10. Accrual Accounting
  • The market value of accounting adjustments
  • Net income vs. cash flow
  • Four general types of adjustments
  • Adjusting journal entries, part 1
  • Adjusting journal entries, part 2
  • Adjusting journal entries, part 3
  • Adjusting journal entries, part 4
  • Closing revenue, expense, and dividend accounts
  • Making the financial statements
  • Next steps

Taught by

Jim Stice and Kay Stice


4.7 rating at LinkedIn Learning based on 1882 ratings

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