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Financial Accounting

Financial Accounting

4 weeks / 6 hours per week

About This Course

It covers the fundamentals taught in a first-semester undergraduate financial accounting course.

Our goal as creators of this course is to prepare you to pass the College Board's CLEP examination and obtain college credit for free.

“Financial Accounting” is a completely self-paced course. It has no prerequisites and it is offered entirely for free.

Course Staff


How is this course organized?

This course is organized into five modules that contain short video lessons, exercises and readings.

All of the course material has been released at once so you can complete it anytime.

What do I need to pass the CLEP exam?

You need to demonstrate how to use and analyze accounting data and financial reports an understand the rationale for generally accepted accounting principles and procedures.

The exam contains approximately 75 questions to be answered in 90 minutes. Please examine our syllabus.

How does this course differ from other CLEP textbooks and traditional courses?

This online course includes a carefully structured series of video lectures and exercises taught by a top quality university professor.




Navigating Through Our Platform

CLEP Program   

Modern States Education Alliance   

Introduce Yourself

1. General Topics

1.0 Introduction to General Topics   

1.1 Generally Accepted Accounting Principles (GAAP)   

1.2 Rules of Double-Entry Accounting/Transaction Analysis/Accounting Equation   

1.3 The Accounting Cycle   

1.4 Business Ethics   

1.5 Purpose of, Presentation of, and Relationships Between Financial Statements   

1.6 Forms of Business   

1.7 Readings

2. The Income Statement

2.0 Introduction to The Income Statement   

2.1 Presentation Format Issues   

2.2 Recognition of Revenue and Expenses   

2.3 Cost of Goods Sold   

2.4 Irregular Items (e.g., Discontinued Operations, Extraordinary Items, etc.)   

2.5 Profitability Analysis   

2.6 Summary   

2.7 Readings

3. The Balance Sheet

3.0 Introduction to The Balance Sheet   

3.1 Cash and Internal Controls   

3.2 Valuation of Accounts/Notes Receivable (Including Bad Debts)   

3.3 Valuation of Inventories   

3.4 Acquisition and Disposal of Long-Term Assets   

3.5 Depreciation/Amortization/Depletion   

3.6 Intangible Assets (e.g., Patents, Goodwill, etc.)   

3.7 Accounts and Notes Payable   

3.8 Long-Term Liabilities (e.g., Bonds Payable)   

3.9 Owner's Equity   

3.10 Preferred and Common Stock   

3.11 Retained Earnings   

3.12 Liquidity, Solvency, and Activity Analysis   

3.13 Summary   

3.14 Readings

4. Statement of Cash Flows

4.0 Introduction to Statement of Cash Flows   

4.1 Indirect Method   

4.2 Cash Flow Analysis   

4.3 Operating, Financing, and Investing Activities   

4.4 Summary   

4.5 Readings

5. Miscellaneous Accounting Components

5.0 Introduction to Miscellaneous Accounting Components   

5.1 Investments   

5.2 Contingent Liabilities   

5.3 Summary   

5.4 Readings

Sample CLEP Questions

Questions 1 - 15

Questions 16 - 30

Questions 31 - 45

Questions 46 - 60

Questions 61 - 75

Questions 76 - 90

Final Steps

Prof. Brian Kelly's Recommendation   

Register for the CLEP Exam   

Test Preparation Tips   

How Your Score Is Computed

Learn More