The Accounting Interview: Decoding Financial Statements

About Course

Introduction:

Welcome to the fascinating world of financial accounting! This course, “Financial Accounting Fundamentals,” is designed to provide you with a comprehensive understanding of the essential principles and practices that govern financial reporting. Whether you are a budding accountant, finance professional, or an enthusiast eager to decode the language of numbers, this course aims to demystify the intricate world of financial statements.

Section 1: The Foundation

This section provides a solid introduction to financial accounting, laying the groundwork for the entire course. Starting with an overview of “Financial Accounting Fundamentals,” the lectures gradually unfold the purpose of financial statements and their role in explaining business cycles. The focus is on key elements such as the income statement, balance sheet, and cash flows, setting the stage for a comprehensive understanding of financial accounting principles.

Section 2: Income Statement

In this section, the intricacies of the income statement are explored in depth. Lectures delve into the format, components, and methods of revenue recognition. Real-world case studies and examples guide learners through understanding non-recurring items, changes in accounting estimates, and the practical application of income statement principles.

Section 3: Balance Sheet

Transitioning to the balance sheet, this section dissects current assets, liabilities, and long-term assets. Practical insights are gained through detailed examinations of inventory management, prepaid expenses, and financial reporting standards. Case studies, such as those on Colgate, provide a tangible understanding of how companies manage and report their financial positions.

Section 4: EPS – The Concepts Of Earnings Per Share

The focus shifts to the critical metric of Earnings Per Share (EPS). Lectures walk through the calculation of basic and diluted EPS, explaining the impact of various factors such as stock dividends, stock splits, and dilution effects from preferred convertible shares and convertible debt. Real-world examples illustrate the application of these concepts.

Section 5: Shareholder’s Equity

This section explores the complexities of shareholder’s equity, covering common stock, treasury stock, retained earnings, dividends, and other comprehensive income. Using examples from companies like MacDonald’s, learners gain practical insights into the structuring of financial equity and the various components that contribute to a firm’s financial standing.

Section 6: Cash Flows Analysis

Delving into the intricacies of cash flows, this section explains the direct and indirect methods of calculating cash flow from operating activities, investing, and financing. Comprehensive examples offer practical insights, helping learners analyze a company’s cash flow and interpret the financial health of an organization.

Section 7: Income Tax – Understanding Income Tax Concepts

The focus turns to income tax, covering deferred tax liabilities, deferred tax assets, and the nuances of temporary and permanent differences. Lectures explain how changes in tax rates impact deferred taxes, providing a comprehensive understanding of the role of income taxes in financial accounting.

Section 8: FSA Techniques – Financial Statement Analysis Techniques

The final section introduces financial statement analysis techniques, including horizontal and vertical analysis, ratio analysis, and comprehensive examples covering activity, liquidity, solvency, and profitability ratios. Learners are equipped with the tools to critically evaluate financial statements and make informed decisions.

Section 9: Effective Resume Making

Craft resumes that stand out by focusing on critical areas such as accomplishments, work experience, and education. Sample resumes and practical tips ensure your CV makes an impact.

Section 10: Group Discussions

Develop skills to excel in group discussions, covering essential topics like teamwork, effective communication, and handling diverse viewpoints. Guidelines and best practices prepare you for real-world scenarios.

Section 11: Job Interviews

Prepare for job interviews with practical advice on first impressions, competency-based questions, and assessment center strategies. Learn to match your skills to job requirements and stand out as a candidate.

Section 12: Business Corporate Etiquette

Master professional etiquette with lectures on conversation techniques, greetings, listening skills, and general corporate behavior. These lessons prepare you for success in any corporate environment.

Section 13: Email Etiquette

Learn the art of professional email communication, including structuring emails, writing subject lines, handling attachments, and formatting. Tips on escalation emails and delivering bad news add value to your communication skills.

Section 14: Job Hunting – Standing Out in the Crowd

Enhance your job search strategies with tips on making your CV stand out, leveraging referrals, and understanding the recruitment process. Learn how to create a lasting impression on recruiters and employers.

Conclusion:

This course is a one-stop solution for mastering financial accounting and essential professional skills. By combining technical knowledge with soft skills training, you’ll gain the confidence and expertise needed to excel in your career.

What Will You Learn?

Overview of financial accounting principles. Understanding the purpose of financial statements. Exploring the dynamics of a business cycle.
Differentiating fiscal year vs. calendar year financial statements. Analyzing income statement formats and calculating profit margins.
Handling non-recurring items and changes in accounting estimates.
Introduction to the balance sheet and current assets. In-depth examination of various current assets.
Exploring long-term assets, liabilities, and shareholder's equity.
Understanding the concepts of basic EPS. Dilution effects of stock dividends, stock splits, and convertible securities.
Comprehensive examples and calculations using the treasury stock method.
Delving into common stock, treasury stock, retained earnings, and dividends. Analyzing additional other comprehensive income and preference shares.
Exploring various dividend types and stock-related transactions.
Introduction to cash flows and direct/indirect CFO methods. Comprehensive examples covering CFO, CFI, CFF, and ending cash balance.
Understanding income taxes and sources of deferred taxes. Examining deferred tax liabilities, assets, and valuation allowances.
Analyzing the impact of changes in tax rates on deferred taxes.
Horizontal and vertical analysis of income statements and balance sheets. Intro to ratio analysis, activity, liquidity, solvency, and profitability ratios
Comprehensive examples demonstrating the application of various financial ratios.
Providing a cohesive understanding of financial accounting principles. Highlighting the practical application of financial statement analysis techniques.
Practical skills to analyze financial statements and ratios.
Techniques for crafting impactful resumes and acing interviews.
Professional etiquette and communication skills for workplace success.
Advanced strategies for job hunting and standing out in a competitive market.

Material Includes

19.5 hours on-demand video
Access on mobile and TV

Requirements

Basic Understanding of Accounting Principles: Familiarity with fundamental accounting concepts like debits, credits, and journal entries.
Mathematical Proficiency: A basic understanding of mathematical principles, as financial accounting involves numerical calculations and ratios.
Business Knowledge: Some background knowledge of business operations and terminology to grasp the context of financial transactions.
Computer Literacy: Proficiency in using spreadsheet software for calculations and financial analysis.
Critical Thinking Skills: Ability to analyze and interpret financial data critically.
Study Commitment: Readiness to dedicate time to self-study, practice problem-solving, and engage in discussions related to financial accounting.
Curiosity and Eagerness to Learn: A genuine interest in understanding the financial health of businesses and the role of accounting in decision-making.
Language Skills: Competency in English to comprehend course materials and participate in discussions.
These prerequisites are not essential, however can be useful for a smooth learning experience and a better understanding of the course content.

Target Audience

This course is designed for individuals and professionals who want to enhance their understanding of financial accounting principles and techniques.
Students and Graduates: Accounting and finance students seeking a comprehensive understanding of financial accounting concepts.
Entry-Level Accountants: Individuals entering the field of accounting who need foundational knowledge and practical skills.
Business Professionals: Entrepreneurs, managers, and business professionals aiming to interpret financial statements and make informed decisions.
Career Switchers: Professionals transitioning into accounting or finance roles from other disciplines who require a strong foundation.
Small Business Owners: Owners of small businesses looking to manage their finances effectively and interpret financial statements.
Investors and Analysts: Investors and financial analysts interested in evaluating the financial performance and health of companies.
Anyone Interested in Accounting: Individuals curious about accounting principles and eager to gain insights into financial reporting.
Continuous Learners: Lifelong learners who recognize the importance of financial literacy and want to stay informed about accounting practices.
The course caters to a diverse audience with varying levels of expertise, providing a structured learning path from foundational concepts to advanced financial analysis techniques.

Course Curriculum

The Foundation

An Introduction To Financial Accounting
Purpose Of Financial Statements
Explaining A Business Cycle
Accounting For Income Statement
Accounting For Balance Sheet -1
Accounting For Balance Sheet -2
Accounting For Balance Sheet – 3
Accounting For Cash Flows
Conclusion

Income Statement

Financial Statements – Fiscal Year Vs Calendar Year
Income Statement Format
Calculating Profit Margins
Non Recurring Items
Changes In Accounting Estimates
Final Remarks
Revenue Recognition – Percentage Completion & Completed Contract
Revenue Recognition – Installment Method & Cost Recovery
Depreciation Expense
Downloading Colgates Income Statement
Analyst Format Of Colgates Income Statement
Formatting The Income Statement
Investigating The Non-Recurring Charges
Separating Non-Recurring Items
Comparison Of Margins – Before And After Adjustments

Balance Sheet

Introduction To Balance Sheet
Introduction To Current Assets
Cash And Cash Equivalents
Cash And Cash Equivalents – Colgate PandG Microsoft
Accounts Receivables
Accounts Receivables Case Study
Inventory
Inventory – Case Study
Inventory – Lcm
Inventory – Colgate
Inventory Valuations
Inventory Valuation – Recap
Prepaid Expenses
Other Current Assets – Colgate
Financial Reporting Standards
Current Liabilities
Current Liabilities – Colgate
Long Term Assets
Introduction To Goodwill
Pooling Method Of Accounting
Purchase Method Of Accounting
Goodwill Impairment
Long Term Investments Part 1
Long Term Investments Continued
Long Term Investments – Example
Long Term Liabilities
Long Term Liabilities – Risk Profile
Introduction To Shareholde’S Equity
Common Stock – Par Value And Apic
Treasury Stock Or Shares
Retained Earnings & Dividends
Additional Other Comprehensive Income
Introduction To Preference Shares
Macdonald’S Shareholder’S Equity
Dividends – Types
Cash And Property Dividend – Example
Stock Dividends
Small & Large Stock Dividends – Example
Stock Split

EPS – The Concepts Of Earnings Per Share

Introduction To Eps
Basic Eps Example
Calculating Weighted Average Shares
Effect Of Stock Dividends And Stock Splits
Simple Vs Complex Structures
Preferred Convertible Shares Dilution
Preferred Convertible Shares Dilution – Example
Anti-Dilutive Preferred Convertible Shares
Convertible Debt Dilution
Convertible Debt Dilution – Example
Anti-Dilutive Convertible Debt
Stock Options
Treasury Stock Method
Stock Option Dilution – Example
Comprehensive Example

Shareholder’s Equity

Introduction To Shareholder’S Equity
Common Stock – Par Value And Apic
Treasury Stock Or Shares
Retained Earnings & Dividends
Additional Other Comprehensive Income
Introduction To Preference Shares
Macdonald’S Shareholder’S Equity
Dividends – Types
Cash And Property Dividend – Example
Stock Dividends
Small & Large Stock Dividends – Example
Stock Split

Cash Flows Analysis

Introduction to Cash Flows
Cfo – Direct Method
Cfo – Direct Method – Continued
Cfo – Direct Method – Example
Cfo – Indirect Method
Cfo – Indirect Method – Example
Cfi
Cff
Comprehensive Example – Cfo – Direct Method – 1
Comprehensive Example – Cfo – Direct Method – 2
Comprehensive Example – Cfo – Indirect Method
Comprehensive Example – Cfi
Comprehensive Example – Cff
Comprehensive Example – Ending Cash Balance

Income Tax – Understanding Income Tax Concepts

Introduction To Income Taxes
Sources Of Deferred Taxes
Deferred Tax Liabilities – Example – Part 1
Deferred Tax Liabilities – Example – Part 2
Deferred Tax Assets – Example
Temporary And Permanent Difference
Valuation Allowance – Deferred Tax Assets
Tax Base – Deferred Taxes
Effect Of Changes In Tax Rates On Deferred Taxes

FSA Techniques – Financial Statement Analysis Techniques

Horizontal And Vertical Analysis
Income Statement – Horizontal And Vertical Analysis – Example
Balance Sheet – Vertical Analysis – Example
Introduction To Ratio Analysis
Activity Ratios
Activity Ratios – Receivables Turnover
Activity Ratios – Inventory And Payables Turnover
Activity Ratios – Cash Conversion Cycle Discussion
Activity Ratios – Working Capital And Fixed Asset Turnover
Liquidity Ratios
Solvency Ratios
Comprehensive Example – Activity Ratio – Cash Conversion
Comprehensive Example – Activity Ratio-Working Capital And Fixed Asset Turnover
Comprehensive Example – Liquidity Ratios
Comprehensive Example – Solvency Ratios
Comprehensive Example – Profitability Ratios
Roe
Roe Example
Dividends Payout Ratio

Effective Resume Making

Group Discussions

Definition of group discussion
Importance of group discussion
Phases of group discussion
Skills of group discussion
Continuation of Skills of group discussion
Guidelines for group discussion
Teamplayer of groupdiscussion
Successful Group Discussion
Awareness in group discussion
Equal Opportunities in group discussion
Do’s of group discussion
Dont’s of group discussion