- Course Type CLEP
- Subject Business and Management
- Level Introductory
- Length 5 Modules
- Video Length 5h 43m
- Reading Pages 461
- Institution Modern States
ABOUT THIS COURSE
Financial Accounting introduces the principles taught in a first-semester undergraduate accounting course. The course emphasizes familiarity with accounting concepts and terminology, preparation and analysis of financial statements, application of accounting techniques to problem-solving situations, and understanding of generally accepted accounting principles (GAAP).
This is a free, self-paced Modern States course with no prerequisites. It is aligned to the CLEP® Financial Accounting exam and is designed to prepare you to succeed on the test and earn college credit at no cost.
Modern States originally developed this course in collaboration with Brian P. Kelly, CFE, CFCI of State University of New York – Farmingdale State College. Dr. Bea Chiang of The College of New Jersey supported course enhancements published in 2025.
Course Overview
Financial Accounting Course Overview - Modern States
| Module | Topic | Video Length | Total pages of required reading |
| Module 1: General Topics (20%-30%) 01:18:16 total video length 62 total reading pages |
1: Introduction to General Topics | 0:01:01 | – |
| 1.1: Introduction to Generally Accepted Accounting Principles (GAAP) | 0:07:17 | 6 | |
| 1.1.1: Generally Accepted Accounting Principles (GAAP) | 0:22:31 | – | |
| 1.2: Introduction to Rules of Double-Entry Accounting, Transaction Analysis, and the Accounting Equation | 0:00:40 | – | |
| 1.2.1: Rules for Double-Entry Accounting | 0:02:58 | 5 | |
| 1.2.2: Rules of Transaction Analysis | 0:03:46 | 4 | |
| 1.2.3: Rules of the Accounting Equation | 0:04:31 | 11 | |
| 1.3: The Accounting Cycle | 0:05:51 | – | |
| 1.4: Business Ethics | 0:09:17 | 9 | |
| 1.5: Introduction to Purpose of, Presentation of, and Relationships Between Financial Statements | 0:00:44 | 11 | |
| 1.5.1: Purpose of Financial Statements | 0:04:08 | – | |
| 1.5.2: Presentation of Financial Statements | 0:04:24 | 4 | |
| 1.5.3: Relationships Between Financial Statements | 0:02:44 | 4 | |
| 1.6: Forms of Business | 0:08:24 | 8 | |
| 1: Summary | – | – | |
| Module 2: The Income Statement (20-30%) 00:52:21 total video length 54 total reading pages |
2: Introduction to The Income Statement | 0:01:10 | – |
| 2.1: Presentation Format Issues | 0:09:25 | 11 | |
| 2.2: Recognition of Revenue and Expenses | 0:04:36 | 11 | |
| 2.3: Cost of Goods Sold | 0:09:25 | 12 | |
| 2.4: Irregular Items (e.g., Discontinued Operations) | 0:04:31 | 10 | |
| 2.5: Profitability Analysis | 0:09:15 | 10 | |
| 2.6: The Income Statement Summary | 0:13:59 | – | |
| 2: Summary | – | – | |
| Module 3: The Balance Sheet (30-40%) 02:33:31 total video length 300 total reading pages |
3: Introduction to The Balance Sheet | 0:02:04 | – |
| 3.1: Cash and Internal Controls | 0:06:45 | 11 | |
| 3.2: Introduction to Valuation of Accounts/Notes Receivable | 0:00:29 | 37 | |
| 3.2.1: Valuation of Accounts Receivable | 0:07:45 | – | |
| 3.2.2: Valuation of Notes Receivable (Including Present Value Concepts) | 0:05:21 | 6 | |
| 3.3: Valuation of Inventories | 0:09:29 | 5 | |
| 3.4: Introduction to Acquisition and Disposal of Long-Term Assets | 0:00:30 | 13 | |
| 3.4.1: Acquisition of Long-Term Assets | 0:03:54 | – | |
| 3.4.2: Disposal of Long-Term Assets | 0:05:44 | – | |
| 3.5: Depreciation/Amortization/Depletion | 0:00:34 | 16 | |
| 3.5.1: Depreciation | 0:07:26 | – | |
| 3.5.2: Amortization | 0:06:21 | – | |
| 3.5.3: Depletion | 0:06:06 | – | |
| 3.6: Intangible Assets (e.g., Patents, Goodwill) | 0:14:45 | 13 | |
| 3.7: Accounts and Notes Payable | 0:00:35 | 5 | |
| 3.7.1: Accounts Payable | 0:02:59 | – | |
| 3.7.2: Notes Payable | 0:05:11 | 39 | |
| 3.8: Long-Term Liabilities (e.g., Bonds Payable) | 0:09:12 | 39 | |
| 3.9: Owner’s Equity | 0:03:33 | 5 | |
| 3.10: Preferred and Common Stock | 0:00:47 | 39 | |
| 3.10.1: Preferred Stock | 0:06:37 | – | |
| 3.10.2: Common Stock | 0:06:30 | – | |
| 3.11: Retained Earnings | 0:02:44 | 39 | |
| 3.12: Liquidity, Solvency, and Activity Analysis | 0:00:44 | 33 | |
| 3.12.1: Liquidity Analysis | 0:05:53 | – | |
| 3.12.2: Solvency Analysis | 0:04:14 | – | |
| 3.12.3: Activity Analysis | 0:06:02 | – | |
| 3.13.1: The Balance Sheet Summary Part 1 | 0:08:03 | – | |
| 3.13.2: The Balance Sheet Summary Part 2 | 0:13:14 | – | |
| 3: Summary | – | – | |
| Module 4: Statement of Cash Flows (5%) 00:31:32 total video length 34 total reading pages |
4: Statement of Cash Flows | 0:01:20 | – |
| 4.1: The Indirect Method | 0:04:49 | 6 | |
| 4.2: Cash Flow Analysis | 0:05:36 | 14 | |
| 4.3: Operating, Investing, and Financing Activities | 0:00:38 | 14 | |
| 4.3.1: Operating Activities | 0:01:45 | – | |
| 4.3.2: Investing Activities | 0:02:09 | – | |
| 4.3.3: Financial Activities | 0:03:46 | – | |
| 4.4: Statement of Cash Flows Summary | 0:11:29 | – | |
| 4: Summary | – | – | |
| Module 5: Miscellaneous Accounting Components (< 5%) 00:26:58 total video length 5 total reading pages |
5: Miscellaneous Accounting Components | 0:00:34 | – |
| 5.1: Investments | 0:05:09 | 5 | |
| 5.2: Contingent Liabilities | 0:04:14 | 6 | |
| 5.3: Miscellaneous Accounting Components Summary | 0:17:01 | – | |
| 5: Summary | – | – | |
| Course Conclusion | – | – |
