CPA & Accounting Careers

Accounting Classes: What You Take and Why

By The Ledgerism Editorial Team · The Ledgerism Brief Editorial Team produces original, methodology-disclosed accounting and tax research—data trackers, databases, and reference guides built to be the most-cited source in the field. Every figure is verified against primary sources including FASB, the IRS, the PCAOB, NASBA, the AICPA, and state boards of accountancy.

Accounting classes move from broad principles to specialized reporting, tax, and audit work. A typical bachelor’s program packs six accounting-specific courses into a 120-credit degree: financial accounting, managerial (cost) accounting, two semesters of intermediate accounting, taxation, auditing, and accounting information systems (AIS). Anyone aiming for the CPA usually adds 30 more credits to reach the 150-hour licensure threshold that most states require.

This guide lays out the core courses, what each one teaches, the prerequisites that gate them, the 150-hour path, and how online options fit.

The core accounting courses at a glance

A four-year accounting degree centers on a repeatable sequence: principles courses first, then intermediate reporting, then the specialized tracks in tax, audit, and systems. The table below shows the standard courses, the level they sit at, and what each covers.

Most programs also require general business courses (business law, finance, economics, statistics) and a growing data-analytics component.

Financial accounting: the foundation

Financial accounting is the first course and the base for everything after it. It teaches the accounting equation (assets = liabilities + equity), how to record transactions with debits and credits, and how to build the four financial statements: balance sheet, income statement, statement of cash flows, and statement of equity.

You learn the accrual model, adjusting and closing entries, and how external users (investors, lenders, regulators) read reported numbers. This course maps to U.S. generally accepted accounting principles, so understanding what GAAP is early makes the later reporting courses easier.

Managerial and cost accounting

Managerial accounting turns inward, serving managers rather than outside users. It covers cost behavior (fixed, variable, mixed), product costing, budgeting, variance analysis, contribution margin, and break-even points. The output is not a public financial statement but decision support: pricing, make-or-buy, and performance measurement.

Cost accounting, sometimes a separate course, goes deeper on job-order and process costing, overhead allocation, and activity-based costing. The line between the two courses varies by program. For the distinction in scope and audience, see financial vs managerial accounting.

Intermediate accounting I and II

Intermediate accounting is the two-course sequence that separates accounting majors from business generalists. It expands the principles material into detailed GAAP treatment of specific accounts: cash and receivables, inventory valuation, property and equipment, intangibles, bonds and long-term debt, leases under ASC 842, income taxes, pensions, and stockholders’ equity.

Expect the heaviest workload of the major here. Many programs use intermediate as a gatekeeper, requiring a minimum grade (often a C or better) to continue. The reporting logic taught here underlies the CPA exam’s Financial Accounting and Reporting content.

Taxation

The tax course introduces the Internal Revenue Code, the difference between book and taxable income, and the mechanics of filing. Individual tax comes first: gross income, adjustments, the standard versus itemized deduction, credits, and filing status. Many programs add a second course on entity taxation (C corporations, S corporations, partnerships).

You work with real forms and schedules, so pairing the course with reference material on the Form 1040 individual return reinforces the concepts. Tax is also a common specialization for graduates who pursue the EA or CPA credential.

Auditing and attestation

Auditing teaches how an independent CPA gathers evidence to express an opinion on whether financial statements are fairly stated. Topics include audit risk, materiality, internal control evaluation, sampling, substantive testing, professional skepticism, and the standard unqualified audit report.

The course leans on standards from the AICPA and, for public companies, the PCAOB. State boards are specific here: an external auditing course typically satisfies the licensure requirement, while internal-audit or operational-audit courses may count as accounting credit but often do not satisfy the audit-specific rule. Check your state board before choosing electives.

Accounting information systems (AIS)

AIS sits at the intersection of accounting and technology. It covers how transactions flow through a system, the transaction cycles (revenue, expenditure, production, payroll), internal controls over financial reporting, ERP platforms, and the basics of IT audit and data security.

As firms automate more of the close, AIS has grown to include data analytics, database concepts, and controls testing. Many state boards now list AIS among the required upper-division accounting subjects alongside financial, tax, and audit.

Prerequisites and the typical sequence

Accounting courses stack in a fixed order because each depends on the one before it. You cannot take intermediate accounting without finishing both principles courses, and you generally cannot take audit until you have completed intermediate.

1. Financial Accounting (Principles I), often first year.
2. Managerial / Cost Accounting (Principles II), after Principles I.
3. Intermediate Accounting I, then II, usually junior year.
4. Taxation, Auditing, AIS, and Advanced, senior year, after intermediate.
5. General business support courses (business law, finance, statistics, economics) run alongside throughout.

Because intermediate is a bottleneck, transfer students and career changers should confirm which principles credits their target school accepts before enrolling.

The 150-hour path to CPA licensure

A bachelor’s degree is 120 credit hours, but CPA licensure has historically required 150. That gap of roughly 30 credits, about a fifth year, is the single biggest reason accounting students take extra classes. Most jurisdictions require 150 hours to be fully licensed, and a subset let you sit for the CPA exam at 120.

The 150-hour rule is changing. A growing number of state boards have added alternative pathways, such as a bachelor’s plus additional experience in place of the 30 extra credits. For the current state-by-state picture, see the state CPA licensure tracker and the roadmap in how to become a CPA.

Ways to earn the credits vary, so confirm that your specific accounting and business credit counts satisfy your state board before committing to a path.

Online accounting classes

Online options now cover the full sequence, from single principles courses through complete MAcc degrees. They fall into three buckets: individual courses to fill a prerequisite or reach 150 hours, full online bachelor’s or master’s degrees, and non-credit certificate courses that do not count toward licensure.

For CPA candidates, the key filter is regional accreditation. State boards generally accept credits only from regionally accredited institutions, and non-credit or continuing-education courses usually do not satisfy degree or licensure requirements. Verify accreditation and credit transferability before paying for any online class you intend to use toward the CPA.

Frequently asked questions

What accounting classes are required for a degree?

A bachelor’s in accounting typically requires six accounting-specific courses: financial accounting, managerial or cost accounting, intermediate accounting I and II, taxation, auditing, and accounting information systems. Some programs add advanced accounting (consolidations). These sit on top of general business courses in law, finance, economics, and statistics within a 120-credit degree.

How hard is intermediate accounting?

Intermediate accounting is widely considered the hardest course in the major. It covers detailed GAAP treatment across two semesters, carries the heaviest problem-solving workload, and often requires a minimum grade (frequently a C or better) to advance. The difficulty comes from volume and precision rather than abstract theory, so consistent practice tends to matter more than raw aptitude.

Do I need 150 credit hours to take accounting classes?

No. You need 120 credits for a bachelor’s degree, and many states let you sit for the CPA exam at 120. The 150-hour rule applies to full CPA licensure in most jurisdictions, not to enrolling in classes. Some states have added alternative pathways that reduce or replace the extra 30 credits, so requirements now vary by jurisdiction.

Which accounting classes matter most for the CPA exam?

Intermediate accounting maps to Financial Accounting and Reporting, the taxation course supports the tax content, and auditing supports Auditing and Attestation. AIS and cost accounting feed the business-analysis and disciplines material. The updated CPA exam pairs three core sections with one discipline, so a strong intermediate and audit foundation carries the most weight. See our CPA exam guide for the section breakdown.

Can I take accounting classes online for CPA credit?

Often, yes, if the institution is regionally accredited and the courses carry academic credit. State boards generally accept online credits on the same terms as in-person ones. Non-credit certificate or continuing-education courses usually do not count toward the degree or the 150-hour requirement. Confirm accreditation and credit transferability with your state board before enrolling.

What are the prerequisites for accounting courses?

Financial accounting usually has no prerequisite beyond basic math. Managerial accounting requires financial accounting first. Intermediate accounting requires both principles courses. Taxation, auditing, and advanced accounting typically require intermediate. AIS usually requires the principles sequence. Because intermediate is a bottleneck, plan it early enough to leave room for the senior-year specialized courses.

Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.