Financial Accounting: Introduction, Topics, Examples & Course Outline

In this article, we will cover another well known and most sought after topic of Financial Accounting.
As we have seen, many scams have unfolded in the world, primarily in the stock markets listed companies, just because of the accounting issues. The cases of Enron, Worldcom, Parmalat, AlbertHein of Netherlands, etc. are well known. They are typical examples of how financial accounts can be manipulated to gain/ show imaginary profits and bloated sales figures. Ultimately, it is blamed on the financial accounting. Hence it is very very important for a firm or even an individual investor to be extra vigilent and careful about creating, writing or even reading these financial accounting numbers.

In this article, we will see the various topics and sub topics which are covered for Financial Accounting. Although we aim to give all the required information, the fin details may still need a thorough analysis and study.

Financial Statements within Financial Accounting:

-- Types of Financial Statements

-- How the different Financial Statements Relate to One Another

General Accounting Issues of Financial Accounting:

-- GAAP (Generally Accepted Accounting Principles)

-- Accounting Concepts and Conventions

Structure and Interpretation of Financial Statements of Financial Accounting:

-- Balance Sheet: Assets, Liabilities and Equities

-- Income Statement: Revenues, Expenses, Gains and Losses

-- Cash Flow Statement: Cash Provided by/used for Operations, Investments and Financing activities

Tools and Techniques for Analyzing Financial Information of Financial Accounting:

-- Financial Ratios

-- Use and Misuse of Financial Ratios in Analyzing Financial Statements