Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity

3 min read

5.4

Appendix: Complete a Comprehensive Accounting Cycle for a Business

3 min read

Unit 6 – Merchandising Transactions

View all

6.1

Compare and Contrast Merchandising versus Service Activities and Transactions

3 min read

6.2

Compare and Contrast Perpetual versus Periodic Inventory Systems

3 min read

6.3

Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System

3 min read

6.4

Analyze and Record Transactions for the Sale of Merchandise Using the Perpetual Inventory System

3 min read

6.5

Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods

3 min read

6.6

Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies

5 min read

6.7

Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System

4 min read

Unit 7 – Accounting Information Systems

View all

7.1

Define and Describe the Components of an Accounting Information System

3 min read

7.2

Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders

3 min read

7.3

Analyze and Journalize Transactions Using Special Journals

2 min read

7.4

Prepare a Subsidiary Ledger

3 min read

7.5

Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems

3 min read

Unit 8 – Fraud, Internal Controls, and Cash

View all

8.1

Analyze Fraud in the Accounting Workplace

3 min read

8.2

Define and Explain Internal Controls and Their Purpose within an Organization

3 min read

8.3

Describe Internal Controls within an Organization

4 min read

8.4

Define the Purpose and Use of a Petty Cash Fund, and Prepare Petty Cash Journal Entries

2 min read

8.5

Discuss Management Responsibilities for Maintaining Internal Controls within an Organization

2 min read

8.6

Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries

3 min read

8.7

Describe Fraud in Financial Statements and Sarbanes-Oxley Act Requirements

3 min read

Unit 9 – Accounting for Receivables

View all

9.1

Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions

3 min read

9.2

Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches

3 min read

9.3

Determine the Efficiency of Receivables Management Using Financial Ratios

3 min read

9.4

Discuss the Role of Accounting for Receivables in Earnings Management

3 min read

9.5

Apply Revenue Recognition Principles to Long-Term Projects

3 min read

9.6

Explain How Notes Receivable and Accounts Receivable Differ

3 min read

9.7

Appendix: Comprehensive Example of Bad Debt Estimation

4 min read

Unit 10 – Inventory

View all

10.1

Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions

3 min read

10.2

Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method

4 min read

10.3

Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method

3 min read

10.4

Explain and Demonstrate the Impact of Inventory Valuation Errors on the Income Statement and Balance Sheet

3 min read

10.5

Examine the Efficiency of Inventory Management Using Financial Ratios

3 min read

Unit 11 – Long–Term Assets

View all

11.1

Distinguish between Tangible and Intangible Assets

3 min read

11.2

Analyze and Classify Capitalized Costs versus Expenses

3 min read

11.3

Explain and Apply Depreciation Methods to Allocate Capitalized Costs

3 min read

11.4

Describe Accounting for Intangible Assets and Record Related Transactions

3 min read

11.5

Describe Some Special Issues in Accounting for Long-Term Assets

3 min read

Unit 12 – Current Liabilities

View all

12.1

Identify and Describe Current Liabilities

4 min read

12.2

Analyze, Journalize, and Report Current Liabilities

3 min read

12.3

Define and Apply Accounting Treatment for Contingent Liabilities

3 min read

12.4

Prepare Journal Entries to Record Short-Term Notes Payable

2 min read

12.5

Record Transactions Incurred in Preparing Payroll

3 min read

Unit 13 – Long–Term Liabilities

View all

13.1

Explain the Pricing of Long-Term Liabilities

3 min read

13.2

Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method

3 min read

13.3

Prepare Journal Entries to Reflect the Life Cycle of Bonds

3 min read

13.4

Appendix: Special Topics Related to Long-Term Liabilities

3 min read

Unit 14 – Corporation Accounting

View all

14.1

Explain the Process of Securing Equity Financing through the Issuance of Stock

4 min read

14.2

Analyze and Record Transactions for the Issuance and Repurchase of Stock

3 min read

14.3

Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits

3 min read

14.4

Compare and Contrast Owners’ Equity versus Retained Earnings

3 min read

14.5

Discuss the Applicability of Earnings per Share as a Method to Measure Performance

3 min read

Unit 15 – Partnership Accounting

View all

15.1

Describe the Advantages and Disadvantages of Organizing as a Partnership

3 min read

15.2

Describe How a Partnership Is Created, Including the Associated Journal Entries

3 min read

15.3

Compute and Allocate Partners’ Share of Income and Loss

3 min read

15.4

Prepare Journal Entries to Record the Admission and Withdrawal of a Partner

2 min read

15.5

Discuss and Record Entries for the Dissolution of a Partnership

3 min read

Unit 16 – Statement of Cash Flows

View all

16.1

Explain the Purpose of the Statement of Cash Flows

2 min read

16.2

Differentiate between Operating, Investing, and Financing Activities

4 min read

16.3

Prepare the Statement of Cash Flows Using the Indirect Method

4 min read

16.4

Prepare the Completed Statement of Cash Flows Using the Indirect Method

3 min read

16.5

Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency

3 min read

16.6

Appendix: Prepare a Completed Statement of Cash Flows Using the Direct Method

4 min read

What do you learn in Financial Accounting I

Financial Accounting I covers the basics of recording and reporting financial transactions. You'll learn about the accounting cycle, financial statements, and how to analyze business events. The course dives into assets, liabilities, and equity, teaching you how to prepare balance sheets, income statements, and cash flow statements. It's all about understanding the language of business and making sense of financial data.

Is Financial Accounting I hard?

Financial Accounting I can be challenging, especially if you're not a numbers person. The concepts aren't rocket science, but there's a lot to memorize and apply. The trickiest part is usually wrapping your head around debits and credits - they work differently than you might expect. But once things click, it gets easier. Most students find it manageable with consistent effort and practice.

Tips for taking Financial Accounting I in college

Use Fiveable Study Guides to help you cram 🌶️
Practice, practice, practice - do as many problem sets as you can
Create flashcards for key terms and concepts (e.g., FIFO, LIFO, depreciation methods)
Form a study group to discuss complex topics like adjusting entries
Use T-accounts to visualize debits and credits
Watch YouTube videos for visual explanations of tricky concepts
Read "The Accounting Game" by Darrell Mullis for a fun intro to accounting basics
Keep up with assignments - falling behind is a recipe for disaster

Common pre-requisites for Financial Accounting I

Introduction to Business: This course provides an overview of business operations and management principles. It's a great foundation for understanding the context of financial accounting.
College Algebra: A basic math course that helps develop the quantitative skills needed for accounting. It covers equations, functions, and problem-solving techniques essential for financial calculations.

Classes similar to Financial Accounting I

Managerial Accounting: Focuses on using accounting information for internal decision-making. You'll learn about cost behavior, budgeting, and performance evaluation.
Financial Statement Analysis: Dives deeper into interpreting financial statements. You'll learn how to assess a company's financial health and make investment decisions.
Intermediate Accounting: Builds on Financial Accounting I with more complex topics. It covers advanced issues in financial reporting and accounting standards.
Accounting Information Systems: Explores the technology used in accounting. You'll learn about database management, internal controls, and accounting software.

Accounting: Focuses on preparing and analyzing financial information for businesses and individuals. Students learn auditing, taxation, and financial reporting.
Finance: Deals with managing money and investments. Students study financial markets, corporate finance, and investment strategies.
Business Administration: Provides a broad overview of business operations. Students learn management, marketing, finance, and entrepreneurship skills.
Economics: Examines how societies allocate resources. Students study market behavior, economic policies, and financial systems.

What can you do with a degree in Financial Accounting I?

Accountant: Prepares and examines financial records for organizations. They ensure accuracy of financial documents and compliance with laws and regulations.
Financial Analyst: Assesses the performance of stocks, bonds, and other investments. They guide businesses and individuals in making investment decisions.
Auditor: Reviews financial records to ensure accuracy and compliance. They may work internally for a company or externally for an auditing firm.
Budget Analyst: Helps organizations plan their finances. They prepare budget reports and monitor spending to improve efficiency.