Accounting for Bankers: An Online Simulation

Most accounting courses teach students how to do the job of an accountant. This approach works great if you're planning to become a CPA, but as a banker, you'll want to focus on different factors. Bankers analyze financial statements instead of prepare them. This online course emphasizes concepts instead of calculations and the impact of those concepts on the financial statements being analyzed.

Accounting for Bankers teaches you how to analyze a financial statement and use the information to better understand the sources and uses of cash. You will work in a fictitious, virtual bank and study the topics through an interactive presentation of information. Following the instruction, you will engage in three simulations to apply the skills and information you have learned.

Accounting for Bankers is the 2015 Bronze Horizon Interactive Award Winner in the Training/e-Learning Sites category, and its Spy Course intro received the Bronze award in the Instructional Video category.

View an Interactive Graphic

Since the course is user-driven, you can move through it at your own pace. It is estimated to take approximately 9 hours and 40 minutes to complete the entire course.


Module 1: The Basics
Learn key terms and concepts and follow along as an example company goes through the accounting cycle from beginning to end.

Topics include:

  • The entity.
  • Statement of retained earnings.
  • The matching concept.
  • Statement of cash flows.
  • CPAs services and opinions.
  • The accounting cycle.
  • Footnotes.
  • Analyzing transactions for dual effect.
  • The balance sheet.
  • Debits and credits.
  • Assets.
  • Revenue and expense recognition.
  • Liabilities.
  • The adjusting process.
  • Owners’ equity.
  • Buddy accounts.
  • The balance sheet – the format.
  • Accounting cycle demonstration.
  • The income statement.

Module 2: Cash Impact Analysis
Learn how to isolate cash flows through cash impact analysis. This process is particularly useful in your banking career because it will enable you to determine how transactions specifically affect cash. It gives you a much better picture of a company's ability to repay a loan as opposed to just looking at the company's financial statements.

Topics include:

  • Introduction to cash impact analysis.
  • Operating expenses and accruals.
  • Sales and accounts receivable.
  • Straight balance sheet changes.
  • Cost of goods sold/inventory.
  • Change in cash.
  • Operating expenses and prepaid accounts.

Module 3: Operational Assets
Learn about fixed assets, natural resources, and intangibles-long-term assets that are necessary for the generation of revenue.

Topics include:

  • Introduction to operational assets.
  • Straight-line depreciation.
  • Accounting for the cost.
  • Accelerated methods.
  • Accounting for decreasing value.
  • Accounting for disposal.

Module 4: Inventory and Cost of Goods Sold
Examine inventory and cost of goods sold. You will complete examples without the extensive calculations that normally accompany inventory and cost of goods sold. Your task is to understand the concepts and processes used to analyze inventory and cost of goods sold, and their effect on the income statements and balance sheets of potential borrowers.

Topics include:

  • The inventory equation.
  • The LIFO reserve.
  • Periodic and perpetual.
  • Lower of cost or market.
  • Valuation methods.
  • The manufacturing company.

Who will benefit?

Bankers who seek a thorough understanding of accounting fundamentals in a credit risk analysis context will benefit from this course. These bankers, typically, have 0 to 10 years’ experience in banking (with some past accounting training) and need a better understanding of how to apply their skills to analyzing a borrower’s ability to repay a loan.

Prerequisites

This course assumes you have a basic knowledge of financial accounting.

Resources

All necessary resources, including sample financial documents, are included in the e-learning course. You can save these resources to your desktop and/or print them.

Assessment

You will receive a score when you have completed the course. Your score is determined by your performance on the knowledge checks that appear in each module.

To find out more about Accounting for Bankers or to make a purchase, please contact your regional manager.