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Accounting Crash Course

Used widely at investment banks and universities, our exercise-driven Accounting Crash Course will quickly get trainees up to speed on topics such as the income statement, the balance sheet, the cash flow statement, and more. This course satisfies the accounting prerequisite for every Wall Street Prep financial modeling course. Step-by-step video lessons make accounting accessible, and are filled with real-world exercises that test and reinforce covered concepts.

Course Video Samples

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The Lemonade Stand Revisited

9:31
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Cash From Operations

13:09
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Linking the 3 Financial Statements

7:22

What You Will Learn

  • The accounting foundation required for students enrolling in any Wall Street Prep modeling program.
  • Designed for those with no prior accounting background as well as those seeking a refresher.
  • Written in a clear, easy-to-follow style that bridges academic concepts with real-life applications.
  • Filled with exercises that test and reinforce covered concepts.

Accounting Crash Course Agenda

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Introduction to financial accounting

  •  The ABC’s of accounting – its purpose, uses, and users
  •  Accounting regulations and principles
  •  U.S. versus international accounting standards (US GAAP vs IFRS)
  •  Financial reporting – introduction to corporate filings

Income statement

  • Revenue recognition & accrual concept of accounting
  • Expenses & the matching principle
  • COGS and depreciation
  • SG&A, R&D and operating expenses
  • Income taxes and non-operating expenses
  • EBITDA, EBIT, EPS
  •  Non-GAAP vs GAAP reporting and non-recurring items

Balance sheet

  • Overview, classifications, and typical items
  • Analysis of the income statement-balance sheet relationships
  • Working capital: Accounts receivable & revenues
  • Inventories & COGS
  • Fixed assets & depreciation
  • Intangible assets & goodwill
  • Deferred tax assets/liabilities & income taxes
  • Retained earnings & net income
  • Lease: Capitalizing versus expensing

Cash flow statement

  •  Overview – direct versus indirect methods of cash flow statement preparation
  • Cash flow from operations
  • Cash flow from investing activities
  • Analysis of cash flow from financing activities

Financial ratio analysis

  • Purpose and use of ratio analysis
  • Liquidity, profitability, activity, and solvency ratios
  • Financial ratio analysis - an integrated approach