Financial Accounting And Cost Accounting

Dive deeper into the preparation and interpretation of financial statements, including account concepts and GAAP

What you'll learn

Explain how the balance sheet, income statement, and statement of cash flows are used, what they measure, and why we need three statements.

Explain what is the balance sheet equation and why the balance sheet equation is the foundational model for accrual accounting/double entry accounting

Explain how the statement of cash flows and income statement link into the balance sheet

Locate a real company’s annual report at their website and locate their financial statements within the annual report

Explain the give and take of a transaction and how to record both sides of the transaction separately with the six stakeholders

Explain why you can’t measure profit with cash and why you need to use accrual accounting (double-entry accounting), not cash accounting

Explain the basis for bookkeeping and basic accounting without learning bookkeeping

Explain how the format of the operating activities section differs from the other two activities (investing and financing)

Differentiate between income and cash flow

Define what are assets, liabilities, and equity and how assets, liabilities, and equity relate

Explain who are the six most important stakeholders of a corporation (employees, customers, government, vendors, lenders, investors)

Explain which side of the give and take appears on the income statement and on the statement of cash flows

Illustrate how accrual accounting can both record cash and profits using a spreadsheet

Explain what each line item of the balance sheet means and distinguish between current and noncurrent assets, liabilities, and shareholders’ equity

Explain each important line item for the three sections of the statement of cash flows: operating activities, investing activities, and financing activities

Explains cost accounting systems

Explains main manufacturing cost elements

Explains cost from the view point of the relationship with cost centers

Calculates production cost according to the job cost system

Calculates product costs according to the process costing

Requirements

There are no prerequisites for the course. You do not need to know anything about accounting

Description

To familiarize students with the mechanics of preparation of financial statements, understanding corporate financial statements, their analysis and interpretation, role of IFRS in accounting discipline, and the concept of management quality analysis and wealth creation. Learning Outcomes · Understand the process of recording and classifying the business transactions and events · Understand the financial statements, viz., Profit and Loss Account, Balance Sheet, and cash flow statement of a sole    proprietor. · Understand the role of IFRS/Ind-AS in accounting discipline. · Understand and Analyze the financial statements from different the perspective of different stakeholders using ratio analysis. · Understanding of financial distress or bankruptcy prediction and how to analyze management quality means the concept of beyond balance sheet.The Importance of Financial Statements in Today’s WorldThe language of business is encapsulated in financial statements. Financial statements provide a scorecard for how a business is doing. Over a series of years, it provides a map of the business’s performance. Managers judge the success of their business with financial statements. Investors make intelligent investing decisions with financial statements. In addition, people in the business world are being held more accountable for their financial statement practices since Enron and WorldCom. They need to know what goes into financial statements.Learn to Read Financial Statements, Not Prepare Them.Just as you don’t need to understand how to make a car in order to drive one, you don’t have to understand bookkeeping to read financial statements. I've prepared a course that eliminates the bookkeeping drudgery and concentrates on the end product of accounting, how to read financial statements, not how to prepare them.Like climbing a spiral staircase, I will teach you how to read three real company’s financial statements (Whole Foods, Sherwin Williams, and Facebook), starting with the simple and progressing to the complex, interspersing the statements with key accounting terms and concepts to help you build expertise.

Overview

Section 1: 1. Introduction of Financial Reporting

Lecture 1 Definition of stakeholders

Lecture 2 Component of Financial Reporting

Lecture 3 Importance of Financial Reporting

Lecture 4 Generally Accepted Accounting Principles

Section 2: Profit & loss account

Lecture 5 Income Statement Format

Lecture 6 Income Statement - Poona Bakery case study

Lecture 7 Income Statement From Annual Report - Revenue

Lecture 8 Discussion about Cost of mat. consumed, purchase and changes in inventory

Lecture 9 Income Statement - Expenses and Exceptional Items

Section 3: Balance Sheet

Lecture 10 Introduction of Balance Sheet

Lecture 11 Balance Sheet Format

Lecture 12 Non Current Assets

Lecture 13 Current Assets

Lecture 14 Share Capital

Lecture 15 Liabilities

Lecture 16 Non Current Liability and Current Liability

Lecture 17 Annual Report of Dabur - Assets

Lecture 18 Annual Report of Dabur Share Capital

Lecture 19 Annual Report of Dabur Non Current and Current Liability

Section 4: Cash Flow Statement

Lecture 20 Introduction of Cash Flow Statement

Lecture 21 Cash Flow from Operating Activities

Lecture 22 Operating Activity - Part 2

Lecture 23 Cash Flow from Financing Activity

Lecture 24 Cash Flow from Investing Activity

Lecture 25 Discussion about all 3 Activities - Operating, Investing and Financing

Lecture 26 Case Study 1 on Cash Flow Statement

Lecture 27 Case Study 2 on Cash Flow Statement

Section 5: Accounting Concepts and Principles

Lecture 28 Introduction of Accounting Concepts and Principles

Lecture 29 Entity Concept

Lecture 30 Money Measurement Concepts

Lecture 31 Periodicity Concept

Lecture 32 Dual Aspect Concept

Lecture 33 Accrual Concept

Lecture 34 Matching Concept

Lecture 35 Going Concern Concept

Lecture 36 Conservatism Concept

Lecture 37 Consistency Concept

Lecture 38 Materiality Concept

Lecture 39 Substance Over Form

Section 6: Basics and Introduction of Cost Management

Lecture 40 Introduction of Cost Management Module and Job Opportunities

Lecture 41 Introduction of Manufacturing and Non Manufacturing Process

Lecture 42 What is Cost

Lecture 43 Period Cost vs. Product Cost

Lecture 44 Cost Base on Level of Activity

Lecture 45 What is Costing

Lecture 46 What is Cost Accounting

Section 7: Cost Sheet

Lecture 47 Introduction of Cost Sheet

Lecture 48 Introduction of Prime Cost and Case 1

Lecture 49 Prime Cost - Case 1

Lecture 50 Introduction of Factory Overhead

Lecture 51 Factory Cost - Case 1

Lecture 52 Factory Cost - Case 2

Lecture 53 Complete discussion of Cost Sheet

Lecture 54 Cost Sheet - Case 1, Discussion

Lecture 55 Cost Sheet Case 2, Discussion

Section 8: Optional - Discussion about Cost Centre's

Lecture 56 Discussion about Cost, Revenue and Profit Centre's

Lecture 57 Investment, Standard _ Discritionary Cost Centre

Section 9: Marginal Costing

Lecture 58 Introduction of Marginal Costing

Lecture 59 Marginal Cost Equation

Lecture 60 Marginal Costing - Case 1

Lecture 61 Marginal Costing - Case 2

Lecture 62 PV Ratio with 1 year data and Example

Lecture 63 PV Ratio with 2 year data with example

Lecture 64 Introduction of Break Even Point

Lecture 65 Discussion of Break Even Formula

Lecture 66 Break Even Point - Case 1

Lecture 67 Break Even Point - Case 2

Lecture 68 Margin of Safety

Lecture 69 Margin of Safety - Case Study 1

Lecture 70 Margin of Safety - Case Study 2

Lecture 71 Complete Case on Marginal Costing

Section 10: Marginal Costing vs Absorption Costing

Lecture 72 Introduction of Difference Between Marginal Costing and Absorption Costing

Lecture 73 Understanding of Marginal Costing With Full Case

Lecture 74 Understanding of Absorption Costing With Example

Lecture 75 Marginal Costing and Absorption Costing - Case 1

Lecture 76 Continuity of Case 1

Lecture 77 Continuity of Case 1

Section 11: Activity Based Costing

Lecture 78 Introduction of Activity Based Costing

Lecture 79 Optional - Advantages and disadvantage of Activity Based Costing

Lecture 80 Important Term of Activity Based Costing

Lecture 81 Examples of Cost Drivers

Lecture 82 Activity Based Costing - Case 1

Lecture 83 Continuity of Case 1

Lecture 84 Activity Based Costing Case 2

Business students who want a big picture view of accounting by understanding the end product, financial statements, not how the end product is created through bookkeeping,Managers who want to read and understand financial statements without learning bookkeeping,Investors who want to read and understand annual reports,Non-accounting/finance employees in companies who want to determine how their company is doing without taking an accounting course,Accounting/finance majors should not take the course