Accounting Basics Course

Lesson 1 • What Accounting Is and Does

Defines accounting, distinguishes it from bookkeeping, and explains its role in decision-making. Anchors all subsequent technical content in real business context.

Lesson 2 • Types of Business Entities

Compares sole proprietorships, partnerships, and corporations from an accounting perspective. Clarifies how entity type shapes equity reporting and owner transactions.

Lesson 3 • Core Accounting Principles and Assumptions

Introduces the conceptual framework governing how transactions are recorded and reported. Students apply these principles to judge whether accounting entries are appropriate.

Lesson 1 • The Trial Balance

Aggregates all ledger balances to verify that total debits equal total credits. Students identify and correct common posting errors using trial balance analysis.

Lesson 2 • Posting to the General Ledger

Transfers journal entries to individual ledger accounts and calculates running balances. The ledger becomes the source data for trial balances and financial statements.

Lesson 3 • Debits, Credits, and Normal Balances

Establishes the rules governing which side of an account increases or decreases its balance. Mastery here prevents systematic recording errors throughout the course.

Lesson 4 • Recording Transactions in the Journal

Demonstrates how to write journal entries with correct accounts, amounts, and descriptions. Journaling is the first physical step in the accounting cycle introduced next.

Lesson 1 • Accrued and Deferred Revenue

Handles revenue earned but not yet billed and cash received before service delivery. Students record both scenarios and reverse them in subsequent periods.

Lesson 2 • Depreciation Methods for Long-Term Assets

Compares straight-line, declining-balance, and units-of-production depreciation calculations. Students select the method that best reflects an asset's consumption pattern.

Lesson 3 • Revenue Recognition Rules

Explains the five-step model for recognising revenue when performance obligations are satisfied. Correct timing prevents overstated or understated income figures.

Lesson 1 • Closing Entries and Post-Closing Trial Balance

Zeros out temporary accounts and transfers net income to retained earnings or owner's equity. Students understand why closing resets the books for the next period.

Lesson 2 • Adjusted Trial Balance

Rebuilds the trial balance after all adjusting entries to confirm continued debit-credit equality. This adjusted version feeds directly into financial statement preparation.

Lesson 3 • Adjusting Entries

Covers accruals, deferrals, depreciation, and inventory adjustments made at period end. These entries align recorded balances with actual economic activity before reporting.

Lesson 1 • Reading and Linking All Four Statements

Demonstrates how net income, equity, and cash balances flow across all four statements. Students trace a single transaction's impact through the complete reporting package.

Lesson 2 • The Statement of Cash Flows

Categorises cash inflows and outflows into operating, investing, and financing activities. Students see why profitable businesses can still face cash shortages.

Lesson 3 • The Income Statement

Builds a multi-step income statement showing revenues, cost of goods sold, gross profit, and net income. Students distinguish operating from non-operating items.

Lesson 4 • The Balance Sheet

Presents assets, liabilities, and equity at a specific date in classified format. Students verify that the accounting equation holds after all statements are prepared.

Lesson 1 • Inventory Valuation Methods

Applies FIFO, LIFO, and weighted-average cost methods to determine ending inventory and cost of goods sold. Method choice affects both profit and tax outcomes.

Lesson 2 • Equity Transactions and Retained Earnings

Records share issuance, buybacks, dividends, and retained earnings appropriations for corporations. Students reconcile the equity section across reporting periods.

Lesson 3 • Current and Long-Term Liabilities

Distinguishes trade creditors, accrued liabilities, notes payable, and bonds from an accounting standpoint. Students record issuance, interest, and repayment entries.

Lesson 4 • Cash and Receivables Management

Covers petty cash, bank reconciliations, and the allowance method for uncollectible accounts. Accurate trade debtors reporting directly affects liquidity assessment.

Lesson 1 • Profitability Ratios

Measures gross margin, operating margin, net margin, return on assets, and return on equity. Students link ratio results to specific income statement and balance sheet drivers.

Lesson 2 • Liquidity and Solvency Ratios

Calculates current ratio, quick ratio, and debt-to-equity to assess short- and long-term financial stability. These ratios are the first metrics lenders and investors examine.

Lesson 3 • Efficiency and Activity Ratios

Evaluates how effectively a business converts assets into revenue using turnover metrics. Slow turnover signals operational inefficiencies that management must address.

Lesson 1 • Detecting and Preventing Accounting Fraud

Examines common fraud schemes, red flags, and whistleblower mechanisms in financial reporting. Students apply the fraud triangle model to assess organisational risk.

Lesson 2 • Ethics in Accounting Practice

Applies professional codes of conduct to conflicts of interest, confidentiality, and earnings management. Ethical judgement is the final safeguard when controls and rules fall short.

Lesson 3 • Fundamentals of Business Budgeting

Builds a master budget from sales forecasts through cash budgets and pro forma statements. Budgets translate strategy into measurable financial targets for every department.