Accounting for Beginners Course

Lesson 1 • Core Accounting Concepts and Assumptions

Introduces the entity, going-concern, periodicity, and monetary-unit assumptions. These concepts govern every recording decision covered later in the course.

Lesson 2 • The Accounting Equation

Presents Assets = Liabilities + Equity as the structural backbone of all accounting records. Every transaction analysis in later chapters depends on this equation.

Lesson 3 • Generally Accepted Accounting Principles

Surveys the authoritative principles—revenue recognition, matching, full disclosure—that standardize financial reporting. Students see how rules prevent misleading statements.

Lesson 4 • What Accounting Is and Does

Defines accounting as an information system that records, classifies, and reports financial data. Anchors the chapter by showing accounting's role in business decisions.

Lesson 1 • Posting to the General Ledger

Demonstrates transferring journal entries to individual T-accounts in the general ledger. The ledger becomes the source for trial balance preparation in the next chapter.

Lesson 2 • Analyzing and Journalizing Transactions

Teaches a step-by-step method to identify affected accounts, determine debit/credit sides, and record entries in the general journal. Accuracy here prevents downstream errors.

Lesson 3 • Debits, Credits, and Normal Balances

Explains that every account has a normal balance side and that debits and credits increase or decrease accounts predictably. This logic drives all journal entries.

Lesson 4 • The Chart of Accounts

Introduces the numbered list of all accounts a business uses, organized by financial statement category. A well-structured chart enables efficient transaction coding.

Lesson 1 • Cash Basis vs. Accrual Basis

Contrasts recording transactions when cash moves versus when economic events occur. Understanding this distinction explains why adjusting entries are necessary.

Lesson 2 • Accruals: Revenues and Expenses Earned or Incurred

Records revenues earned but not yet billed and expenses incurred but not yet paid. These entries ensure the income statement reflects actual period activity.

Lesson 3 • Preparing the Adjusted Trial Balance

Combines unadjusted balances with all adjusting entries to produce the adjusted trial balance. This document feeds directly into financial statement preparation.

Lesson 4 • Deferrals: Prepaid and Unearned Items

Covers adjusting entries for prepaid expenses and unearned revenues that were recorded as assets or liabilities. Proper adjustment moves amounts to the income statement.

Lesson 1 • Statement of Owner's Equity

Shows how beginning equity changes through net income and owner withdrawals to produce ending equity. The ending balance flows directly to the balance sheet.

Lesson 2 • Closing Entries and Post-Closing Trial Balance

Zeros out temporary accounts—revenues, expenses, and withdrawals—by transferring balances to equity. The post-closing trial balance confirms only permanent accounts remain open.

Lesson 3 • The Income Statement

Builds the income statement by matching revenues against expenses to calculate net income or net loss. This statement is the primary measure of business profitability.

Lesson 4 • Relationships Among Financial Statements

Traces how net income links the income statement to equity, and how equity links to the balance sheet. Understanding linkages prevents errors when statements are revised.

Lesson 1 • Petty Cash Fund Management

Establishes and replenishes a petty cash fund used for small, routine expenditures. Proper documentation and periodic replenishment maintain accurate expense records.

Lesson 2 • Cash and Its Importance in Accounting

Defines cash and cash equivalents and explains why cash is the most liquid and fraud-prone asset. Proper cash accounting underpins reliable financial statements.

Lesson 3 • Bank Reconciliation

Reconciles the company's cash book balance to the bank statement balance by identifying outstanding checks and deposits in transit. Adjusting entries correct the book balance.

Lesson 4 • Cash Controls for Receipts and Payments

Details procedures for controlling cash inflows through point-of-sale systems and outflows through check authorization. Layered controls reduce the risk of misappropriation.

Lesson 1 • Recording Credit Sales and Receivables

Journalizes sales on account and tracks amounts owed by customers in the accounts receivable subsidiary ledger. Accurate receivable records support cash flow forecasting.

Lesson 2 • Writing Off and Recovering Accounts

Records the write-off of a specific uncollectible account and the reinstatement when a customer later pays. Both entries keep the allowance account accurate.

Lesson 3 • Revenue Recognition Principles in Practice

Applies the five-step revenue recognition model to common sales scenarios including long-term contracts and bundled services. Correct timing prevents overstated revenue.

Lesson 4 • Notes Receivable and Interest

Distinguishes notes receivable from accounts receivable and calculates interest earned over the note's term. Proper accrual of interest aligns with the matching principle.

Lesson 1 • Inventory Errors and Their Effects

Traces how overstatements or understatements of ending inventory distort cost of goods sold, net income, and equity across two periods. Detecting errors early prevents misstated reports.

Lesson 2 • Purchasing Merchandise and Related Costs

Records purchases, purchase returns, allowances, and freight-in under both systems. Accurate purchase recording establishes the correct cost basis for inventory.

Lesson 3 • Inventory Systems: Perpetual vs. Periodic

Contrasts continuous inventory tracking under the perpetual system with end-of-period counting under the periodic system. System choice affects journal entry timing and detail.

Lesson 4 • Cost-Flow Assumptions: FIFO, LIFO, and Average Cost

Applies three inventory cost-flow methods to the same data set and compares resulting cost of goods sold and ending inventory values. Method choice affects reported income.

Lesson 1 • Long-Term Liabilities and Equity Transactions

Records bond issuance, notes payable, and equity contributions and distributions. Understanding these entries completes the non-current side of the balance sheet.

Lesson 2 • Depreciation Methods Compared

Calculates depreciation under straight-line, declining-balance, and units-of-production methods and compares their income effects. Method selection should reflect the asset's usage pattern.

Lesson 3 • Disposal and Impairment of Assets

Records retirement, sale, and exchange of long-term assets, recognizing gains or losses on disposal. Impairment testing identifies assets whose carrying value exceeds recoverable amount.

Lesson 4 • Acquiring and Costing Long-Term Assets

Capitalizes all costs necessary to bring an asset to its intended use, distinguishing capital expenditures from revenue expenditures. Correct capitalization prevents expense distortion.