Accounting Fundamentals

[Level 1] Construct an income statement, balance sheet, and cash flow statement
  • 63 Videos
  • 5 Quizzes
  • 2 Surveys
  • 1 Exam
  • 2.0 hrs

Course Curriculum

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Full CFI Program: 22 courses, 14 templates & Financial Analyst Certification

Course description

Accounting fundamentals course overview

This free 2-part accounting fundamentals course will guide you through the accounting process. We explore the layout of the balance sheet, income statement, and cash flow statement; and demonstrate how to prepare financial statements from scratch. This free accounting course is an essential building block required for performing financial modeling and other types of wall street financial analysis.

Free Accounting Course Online

Constructing an income statement and balance sheet

In the first module of this free accounting course, we explore the layout of the balance sheet and income statement, explore how transactions are recorded, and prepare a simple balance sheet and income statement. By the end of this module, you will have a solid understanding of how to construct a balance sheet and income statement.

  • Explain the format of the income statement and balance sheet
  • Define various financial statement terms (e.g. accounts receivable, prepayments, etc.)
  • Record financial statement transactions (e.g. invoicing, raising equity, buying inventory, etc.)
  • Prepare a simple income statement and balance sheet

Accounting Courses

Constructing a cash flow statement

In this second module of this free accounting course, we explore the layout of the cash flow statement, explain the differences between the cash flow statement and the income statement, and prepare a cash flow statement from scratch. By the end of this module, you will have a solid understanding of how to construct a cash flow statement.

  • Outline the format of the cash flow statement
  • Explain the difference between profit and cash
  • Prepare a simple cash flow statement using the balance sheet and income statement

Free Accounting class

More Accounting Course Details

This online accounting course incorporates a wide range of applied exercises and case studies. Sophisticated search and navigation tools allow you to go at your own pace while pop quizzes test what you’ve just learned. The course also includes two PDF reference guides – an accounting factsheet and a financial statements glossary - that can be used while taking the course and downloaded to your computer for future reference. This is the ultimate accounting crash course to prep for wall street careers!

Introduction to Accounting Class

Who should take this free accounting course?

This free online accounting course is designed for anyone who wants to review the fundamentals and building blocks of the accounting process.  This class will also be useful for professionals who work in finance and want to review the concepts required for financial modeling and valuation in CFI's later courses.

Reviews (122)

Accounting Fundamentals

This course stimulated my interest in learning more about accounting. I learned a lot and it is very easy to understand and follow. After doing all the exercises, I am pretty confident that my accounting proficiency increased. Thank you very much. You are the best. I hope you give more free courses and certificates. Thank you thank you.

Very insightful and straightforward

by Phuong Nguyen
Very insightful and straightforward
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by Pranayeshwar Vashisth

by Pranayeshwar Vashisth

by Atishs Samal

by hazem abotoha

by Mohammed Hassan Haroun Bagay

Accounting Fundamentals

This course stimulated my interest in learning more about accounting. I learned a lot and it is very easy to understand and follow. After doing all the exercises, I am pretty confident that my accounting proficiency increased. Thank you very much. You are the best. I hope you give more free courses and certificates. Thank you thank you.

by Vinayagavel S

Very insightful and straightforward

by Phuong Nguyen
Very insightful and straightforward

by Pavan Kanugonda

by Ahmedullah khatri

by Vivek Srivastava
Nice work

by Tim Vipond

Taimur Zulfiqar

by Taimur Zulfiqar
Excellent course on fundamentals of Accounting. The lectures are excellent in quality and contents, really enjoys a lot and its a five star course ......CFI is the best institute for corporate finance training and i am recommending everyone who wants to start career in corporate finance. I would like to thank CEO Tim Vipond for his support, cooperation and quality of learning at CFI.


by Chizhim E. Adikema
Great course for non-finance professionals

by dimple aggrawal

by Robert Koskey Kipkemoi
Great Course.



Excellent course

by Reynaldo Jose Alvarado Ramos
Excellent course

Perfect very Educative

by Philip Oduro Annor
Thanks to CFI for the opportunity give me to broaden my knowledge on the three key financial Statements. But I would kindly ask if additional and more practical questions are added to course and test Thanks

I made it

by Fumane Chabane
I have learned a lot through this course, i am willing to do as much as I can to improve my knowledge in this field of Accounting. Thanks to CFI


Accounting Fundamentals

by Gideon Adunola
It was a well detailed and understandable.

by Asma Albraiki

Accounting Fundamentals

by Elizabeth Francess Yombo
Accounting Fundamental is a stepping stone to the field of Accounting

by Abdul Rehaman

Accounting Fundamentals

by Sardor Shermatov
I really enjoyed this course! It helped me to refresh my knowledge in a quick and entertaining way. I suggest everyone not to skip quizzes and exercises. Best of luck to CFI! Regards, Sardor

Accounting Fundamentals

by lawal taofeek
The Accounting fundamental short videos and quizzes were the best way to explained in a simple way even a layman could understand.thank you so much

by Nastya Bayeva

by Adeniyi Ajani
Nice course, straight forward and direct on point. Most importantly it is easy to understand and apply.

Accounting Fundamentals

by Saroj Kumar
Suprb explanation. keep up the gud work

by Abshir mohamed Hassan


by satya ch

by Lereko Leeu

by Haitham Omar Mahmoud
it is a great course and it was amazing

by Famil Namazli

Very knowlwdgable

by Aamir Mushtaq

by Ricardo Lisboa

Accounting Fundamentals -- Great Course!!

by Greysen West
Good refresher for a finance guy who let some of the pesky accounting details fall by the wayside whilst focusing only on ratios & analysis. Can't wait to take more!! CFI is tremendously beneficial with a high level of ease of use.

by Marie Margarette Dominguez

Anwar Khan

by Anwar Khan
Well defined step-by-step guided course this will give more knowledge to the learner Regards, Anwar Ahmed Khan

by Shubha Ambegaonlar


Balance sheet

by Shashank Hegde
Contents of balance sheet i.e. Assets equities and liabilities


The videos are awesome, very educational and informative. Exercises provided, though simple, cut across all the topics and open the brain.

cost Accounting

by Joshua John


by Olubode Samuel
The course is very good and useful

by Heta Pandit

Accounting Fundamentals

by Ignatius Henry, MBA
I have an MBA and I am currently working on an MS in Finance, and I am very happy to say that the skills I learned from this accounting course not only solidified my current understanding of the material, but it also enhanced and added to my current knowledge. There are hands-on exercises via Excel as well as exams that you must pass to earn your accredited certificate--a certificate that CFI will back up for employers. The certificate is also worth credit from multiple institutions, such as the CFA to name one. I'm happy. This product is worth much more than what I paid, too. Excellent work CFI!

very good

by Zassala Nicolau
This is a Fantastic Course of Accounting Fundamentals...

Accounting Fundamentals

by julian prescod
This course was very informative.

by Jing Wang

by Ngu War Lwin

by Abdulai Sesay


by Gary Brent
Great material you can do in your own time!

by Javed Ahmed

by Srihari Rao

by Zura Kiria

by athul mk

by Keletso Lame Moipoledi
I really enjoyed studying this course. Material is so simplified and easy to grasp, I'm even encouraged to take up another one


by Sergio Castro

Great learning!!

by Manan Shah

by Teka Derick Tikum
Good for accounting beginners. Reach your skills to draw up a good account.

Integrating the 3 Financial Statements

by david rogers
This course is a great introduction to the 3 Financial Statements. The course easily extends from the basic concepts of the 3 financial statements into working examples. The course wraps up with you having a working knowledge of what aspect of financial accounting each financial statement addresses. What I found very useful was how the course relates the Balance Sheet to the Income Statement. The second half of the course then illustrates -- with many intuitive demonstrations --, how the more complex Cashflow Statement is derived from the first two financial statements. I found the delivery of the course, with its short videos and extensive illustrations, made learning sessions very light and easy. The course notes that are in the process of being supplied with each course, makes for very handy review sessions. After undertaking the accounting fundamentals, I purchased the full suite of Corporate Finance, and find the various courses fascinating. I thought this course matter would be too opaque to a newbie, but am experiencing it to be very learnable in its succinct short videos format. 5 stars


The courses made concepts easy to understand and the exercises are very good and simple practices of the material. I wish CFI had classes for the CFA exam.

by Saurav Kumar

by oladele Omokanye

by Syed Abdullah Nabil

Perfect training!

by Mauricio Adrián Chacon Mora
A simple way to learn: theory, example, and practice.

by Md Mehedi Monwar Jim

by brian millen

Great Course!!

by Sweta Rani
As I don't have any background related to accounting, this course helped me get acquainted with some of the terms and concepts. Fundamentals have been explained very clearly with examples which help in fast learning. Thanks!!

by Lancelot Berlemont

by Steve Columbaro

by Milind Gupta

Interesting course

by Richard Kwame Ahuntor
I really learned a lot from this course

Good course

by Kumar Srijan Singh
This course is very helpful for beginners in the field of accounting and finance. CFI thank you for your support and I will highly recommend others for the course.

by Raymond Ogagarue

Very good

Refresher course

by Ma. Lourdes Barangan
Nice module and it's very helpful.


Using short and understandable definitions, the course guides through the concept easily and the least you know you get all the information that is necessary throughout the course. Excellent course.


by Hassan Javaheri
As a beginner in accounting, it was a very useful course. Thank you guys.

Very well explained

by Jay Savla
Seemingly difficult concepts explained in a very simple, understandable and interesting manner. Really helpful!

by Salah Mohammed Elboraey


by Ajit Singh
The visualization used in the course was very good. The pace was good and the examples focused on the core topic. Good one.

Great Foundations Course

by Lendora Thompson-Saunders
Great refresher for a seasoned accounting professional.

Great course

This course is fruitful as far as the accounting field is concerned. Its simple but of high value and it is enriched with basic fundamentals of accounting. Distance and finance is not a barrier you can learn wherever you are.

Awesome Course

by Emmanuel Babarinde
It was good time spent on this course, I have an improved knowledge about the fundamentals of accounting now. Thanks.

Good start

by dinakar yarramilli
It's really helpful and informative.

Finance Made easy

by Alicia Narine Paul
I enjoyed this course because it was easy to understand

Great intro session - exercises still need work

by Kashaf Morrow
The first exercise in the balance sheet prep calculates depreciation before this is covered in the course. All exercises need to be reviewed for consistency. The course content however is very clear and concise and a good introduction to accruals method of accounting

Excellent introduction

by David Sams
Very good introduction to accounting fundamentals

by Elena Puică

Another great class from CFI

by Yves Seybel
Easy to follow, clear examples and plenty of exercises to work on.

Accounting Fundamentals

by Wavell Van Wyk
The course very informative and very practical

Accounting Fundamentals

by Wavell Van Wyk

Accounting fundamentals

by S. Victoria C. Kougnimon Aholou

Simple & Fundamental

by Ajay Mangal
As an accounting professional I found this course a refresher of my knowledge of accounting fundamentals. Explained in an easy to understand way, even for a non-accounting person.

by Swastik Pradhan

Accounting fundamentals

Better than i expected. I now have a better understanding and a solid foundation. thank you.

Succint and accurate

by Richard Hastings
Good base level of accounting. Doesn't get in to too much unnecessary accounting jargon and its intricacies. The word doc's used for Part 1 examples are a little clunky though.

by Jan Novák

Great course!

by Stanislav Boyadjiev
Very useful and simple financial accounting course, with good exercises!

by Abhishek tiwari

The best understanding of accounting in the minimum possible time

by Rishad Reza Nur
My experience taking this course is very impressive. The course has provided the basic platform of understanding accounting with minimum effort and minimum time, even if you're not from a business background.

by Tchounkeu Jemia Hermann Jephte

by Aarav Singh

by Barrack Mandela


by barbara arnold

by Cara Nowen

by Rustom Rupand

by thrupti alva


by Yousif Nasir

Review on Accounting Fundamentals

by Swan Aung
Accounting Fundamentals is useful for business.

Nice for fundamentals review

by Jared Blum
Great review of key accounting concepts required for financial analysis and building a financial model. This is like an accounting 101 course condensed into a few hours.


by Mukesh Kumar Genolia


Accounting Fundamentals

by Michael Collins
Really good level of detail and explanation. The exercises are really useful.

Accounting Fundamentals

by Zach Allwright
Overall, This course was excellent! I enjoyed the process and extracted great value from the content even from an intermediate level student.

Learn all you need to know about accounting

by Barbara Alvarez
This course presents the layout of the balance sheet, income statement, and cash flow statement. Great way to learn how to prepare financial statements from scratch. Scott Powell is an excellent instructor! Highly recommend this course to anyone interested in learning the fundamentals of accounting.

Like going to B School at home

by Sarah Lawson
This course was better than most accounting courses I took in school and a great refresher for my new job in AP. Highly recommend it to anyone who wants a free course that's super easy to follow