Financial Accounting

Program Structure

Financial Accounting consists of approximately 60 hours of material delivered over an eight-week period. You can complete the coursework on your own time while meeting regular deadlines.

Financial Accounting is part of the Finance & Accounting Learning Track. If you’re interested in developing deeper insights and expertise, you can choose to complete three finance & accounting courses within 18 months to earn a Certificate of Specialization.

This course is also part of our three-course Credential of Readiness (CORe) program—consisting of Business Analytics, Economics for Managers, and Financial Accounting—available for $2,250.

Interested in mastering business essentials in CORe?

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Note: Participants that enroll in the Financial Accounting course are not eligible to enroll in the CORe program. And if enrolling in the CORe program, participants are not eligible to enroll separately in the Financial Accounting course.

Syllabus

Financial Accounting will teach you the fundamentals of financial accounting from the ground up. You will learn how to prepare a balance sheet, income statement, and cash flow statement, analyze financial statements, and calculate and interpret critical ratios. You will also learn the role of managerial judgment in choosing accounting estimates and methods. The course concludes with an introduction to forecasting and valuation.

New cases: Starting with the October 2021 wave, Financial Accounting includes two new cases: Mahindra Finance in Module 4 and Estee Lauder in Module 7. The Mahindra Finance case covers credit risk management, and the Estee Lauder case introduces lease accounting and the impact of recent changes in lease accounting standards. Professor Narayanan discusses the new material in this video.

Learning requirements: In order to earn a Certificate of Completion, participants must thoughtfully complete all 7 modules, including satisfactory completion of associated quizzes, by stated deadlines.

Download Syllabus

Modules	Case Studies	Takeaways	Key Exercises
Module 1: The Accounting Equation	Cardullo's Gourmet Shoppe Apple Inc. Bikram Yoga Natick	Understand key accounting concepts, terms, and principles	Demonstrate how different transactions impact the accounting equation Quiz
Module 2: Recording Transactions	Cardullo's Gourmet Shoppe Bikram Yoga Natick	Understand where financial statement information originates	Record business transactions as journal entries Construct a trial balance Quiz
Module 3: Financial Statements	Hipzone Green Mountain Coffee Roasters	Understand the content and purpose of the income statement and balance sheet See how the trial balance is used to create the balance sheet and income statement	Construct the balance sheet and income statement Quiz
Module 4: Adjusting Journal Entries	PepsiCo New Case (2021): Mahindra Finance	Understand complex accounting transactions and how they relate to accounting principles Appreciate how to recognize, mitigate, and manage credit risks Recognize the impact of judgment and bias on financial statements and accounting practices	Record advanced business transactions as journal entries Quiz
Module 5: The Statement of Cash Flows	Morgan Stanley American Red Cross	Understand how to construct and interpret the cash flow statement Recognize the differences between GAAP and IFRS standards for cash flow statement creation	Use the statement of cash flows to evaluate the financial health and life-cycle stage of a business Quiz
Module 6: Analyzing Financial Statements	Morgan Stanley	Evaluate company performance using profitability, efficiency, leverage, and other ratios	Analyze ratios and use the DuPont Framework to evaluate the financial state and strategy of a business Team discussion Quiz
Module 7: Accounting for the Future	Metropolis Healthcare American Red Cross New Case (2021): Estée Lauder	Use financial forecasting to predict future revenue, expenses, and cash flow Understand key concepts and metrics in valuation, including time value of money, terminal value, net present value, internal rate of return, and payback period Learn how companies account for leases—as a future obligation—and appreciate the impact of changes in lease accounting standards	Learn how to value a venture, project, or investment opportunity Optional: Practice preparing pro-forma financial statements, calculating and forecasting free cash flows, and performing a sensitivity analysis in Excel Quiz

The HBS Online Advantage

• World-class faculty
• Edge-of-your-seat online learning
• Global peer collaboration and networking
• Real-world, case-based learning

Harvard Business School Online offers a unique and highly engaging way to learn vital business concepts. Immerse yourself in real challenges faced by business leaders across a variety of industries. Financial Accounting puts you in the shoes of an equity research analyst, yoga studio owner, and leader of one of the largest nonprofits in the United States. You’ll wrestle with the same issues they faced, while problem-solving and interacting with fellow learners from around the world.