Accounting Fundamentals Course

Lesson 1 • Overview of Financial Statements

Introduces the four primary financial statements and their interrelationships. Provides a roadmap for the detailed coverage in later chapters.

Lesson 2 • The Accounting Equation

Presents Assets = Liabilities + Equity as the structural foundation of all financial records. Students apply the equation to simple transactions to verify balance.

Lesson 3 • Core Accounting Principles and Assumptions

Introduces the conceptual framework governing how transactions are recorded and reported. These principles underpin every rule taught throughout the course.

Lesson 1 • Posting to the General Ledger

Covers transferring journal entries to ledger accounts and maintaining running balances. Connects journalising to the ledger as the central record of account activity.

Lesson 2 • Debits, Credits, and Account Types

Explains the debit-credit convention and how it applies to each account category. Mastery here is prerequisite for all journal and ledger work.

Lesson 3 • Recording Transactions in the Journal

Teaches the general journal format and the process of analysing and recording business events. Students practise compound and simple journal entries.

Lesson 1 • Closing Entries and Post-Closing Trial Balance

Resets temporary accounts to zero and transfers net income to equity at period end. Students verify the ledger is ready for the next accounting period.

Lesson 2 • Adjusting Entries

Explains why and how to record accruals, deferrals, and estimates before preparing statements. Adjusting entries ensure revenues and expenses match the correct period.

Lesson 3 • Steps in the Accounting Cycle

Maps all nine steps of the cycle and explains how each feeds the next. Provides the procedural framework students follow throughout this chapter.

Lesson 1 • Revenue Recognition Principles

Explains when and how revenue is recognised under the performance-obligation framework. Correct recognition timing is critical for accurate income reporting.

Lesson 2 • Discontinued Operations and Special Items

Addresses how unusual, infrequent, and discontinued items are disclosed on the profit and loss account. Proper classification prevents distortion of operating performance.

Lesson 3 • Expense Recognition and Matching

Covers the matching principle and how costs are associated with the revenues they generate. Students distinguish period costs from product costs.

Lesson 1 • Long-Term Assets and Depreciation

Addresses acquisition, capitalisation, and systematic cost allocation for property, plant, and equipment. Students apply straight-line, declining-balance, and units-of-production methods.

Lesson 2 • Balance Sheet Structure and Classification

Explains current vs. non-current classification and the ordering of assets and liabilities. Proper classification enables meaningful liquidity and solvency analysis.

Lesson 3 • Stock Valuation Methods

Compares FIFO, LIFO, and weighted-average cost methods and their impact on financial statements. Students calculate closing stock and cost of goods sold under each method.

Lesson 4 • Intangible Assets and Goodwill

Explains recognition, amortisation, and impairment of intangible assets including goodwill. Students distinguish finite-life from indefinite-life intangibles.

Lesson 1 • Current Liabilities and Contingencies

Covers trade creditors, accrued liabilities, unearned revenue, and contingent obligations. Accurate liability recognition is essential for solvency assessment.

Lesson 2 • Leases and Off-Balance-Sheet Financing

Distinguishes operating leases from finance leases and explains recognition criteria. Students record right-of-use assets and lease liabilities for finance leases.

Lesson 3 • Shareholders' Equity Transactions

Covers issuance of ordinary and preference shares, treasury shares, and dividends. Students record equity transactions and prepare the statement of changes in equity.

Lesson 1 • Purpose and Structure of Cash Flow Reporting

Explains why cash flow information complements accrual-based statements and defines the three activity sections. Sets the analytical context for the chapter.

Lesson 2 • Investing and Financing Activities

Covers classification and presentation of capital expenditure, asset sales, debt, and equity transactions. Students complete a full cash flow statement.

Lesson 3 • Indirect Method for Operating Activities

Reconciles net income to operating cash flow by adjusting for non-cash items and working capital changes. The indirect method is the most widely used presentation format.

Lesson 1 • Liquidity and Efficiency Ratios

Measures a company's ability to meet short-term obligations and manage working capital. Students calculate and interpret current, quick, and activity ratios.

Lesson 2 • Limitations and Qualitative Factors

Addresses the constraints of ratio analysis and the role of non-financial information in assessment. Students develop balanced, critical analytical judgment.

Lesson 3 • Solvency and Gearing Ratios

Assesses long-term financial stability and the degree of debt financing. Students evaluate debt-to-equity, interest cover, and related metrics.

Lesson 4 • Profitability and Market Ratios

Evaluates earnings quality, return on investment, and market-based valuation metrics. Students link profitability ratios to strategic performance drivers.