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Learn accounting. Get an introduction to the four basic types: financial accounting, managerial accounting, income tax accounting, and bookkeeping.
Accounting uses financial information from the past to make decisions in the present to change the future. This course provides an introduction to the four basic types of accountingâbookkeeping and financial, managerial, and tax accountingâand explains the links between accounting, decision-making, business performance, and financial health. Accounting professors Jim and Kay Stice review the three primary financial statements, using actual examples from companies like Walmart. They show how businesses use managerial accounting to build budgets and determine the cost of products, and explain how income taxes, credits, and deductions are calculated in the United States. The course is self-contained; there are no prerequisites or specialized knowledge required to follow along. By the end, you should have a better understanding of accounting and how it affects your business or personal finance.
Overview
Syllabus
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Introduction
- The importance of accounting
- What you should know
- The four flavors of accounting
- Bookkeeping
- Financial accounting
- Managerial accounting
- Income taxes
- Who uses financial statements?
- The accounting equation
- Assets
- Liabilities
- Equity
- Balance sheet example: Walmart assets
- Balance sheet example: Walmart liabilities and equity
- Limitations of the balance sheet
- The balance sheet and the income statement
- Overview of the income statement
- Earnings per share
- Income statement example: Walmart revenues
- Income statement example: Walmart expenses
- Overview of the cash flow statement
- Cash flow example
- Summary of financial reporting
- DuPont and managerial accounting
- A closer look at managerial accounting
- Product costing: Materials and labor
- Product costing: Overhead
- Break-even analysis: Computations
- Break-even analysis: Interpretation and use
- Budgets: Realistic benchmarks
- Budgets: Solving problems in advance
- Performance evaluation example: Drilling contest
- Performance evaluation example: Optometrist
- Performance evaluation example: Stice boys
- The history of income taxes
- Tax brackets
- Average and marginal tax rates
- Tax deductions and credits
- Capital gains vs. ordinary income
- Income tax summary
- Conclusion
