Business Accounting Course

Lesson 1 • Core Accounting Concepts and Principles

Introduces generally accepted principles such as accrual basis, going concern, and consistency. These principles govern every recording and reporting decision in the course.

Lesson 2 • The Accounting Equation

Explains Assets = Liabilities + Equity as the structural backbone of all financial records. Students apply the equation to analyze how transactions affect each element.

Lesson 3 • Overview of Financial Statements

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

Lesson 1 • Chart of Accounts Design

Teaches how to structure and number accounts to reflect a business's operations. A well-designed chart enables efficient reporting and analysis throughout the course.

Lesson 2 • Recording Transactions in the Journal

Demonstrates how to write journal entries for common business events using proper format. Accuracy here directly determines the reliability of all downstream reports.

Lesson 3 • Posting to the General Ledger

Explains the transfer of journal entries to individual ledger accounts and running balances. Students verify posting accuracy using the trial balance.

Lesson 4 • The Double-Entry System Explained

Covers the rule that every transaction has equal debits and credits, ensuring the accounting equation stays balanced. Builds the mechanical foundation for all journal entries.

Lesson 1 • Adjusting Entries

Covers accruals, deferrals, depreciation, and other period-end adjustments required by the accrual basis. Adjustments ensure revenues and expenses are reported in the correct period.

Lesson 2 • Analyzing and Classifying Transactions

Develops a systematic approach to identifying which accounts are affected and by how much. This analytical skill underpins every subsequent step in the cycle.

Lesson 3 • Preparing Financial Statements from the Trial Balance

Demonstrates how to draft the income statement, balance sheet, and cash flow statement from an adjusted trial balance. Reinforces the linkages between statements introduced in Chapter 1.

Lesson 1 • Single-Step vs. Multi-Step Income Statements

Compares the two formats and explains when each is appropriate for different business types. Students build both formats from the same data set to see the analytical difference.

Lesson 2 • Classifying and Recording Expenses

Distinguishes cost of goods sold, operating expenses, and non-operating items. Proper classification drives accurate gross profit and operating income calculations.

Lesson 3 • Merchandising Operations and Inventory

Covers purchase and sales entries, returns, discounts, and freight for merchandising businesses. These entries feed directly into cost of goods sold on the income statement.

Lesson 1 • Accounts Receivable and Bad Debts

Teaches the allowance method and direct write-off method for estimating and recording uncollectible accounts. Accurate receivables reporting reflects the net realizable value of amounts owed.

Lesson 2 • Cash and Internal Controls

Covers petty cash, bank reconciliations, and the internal controls that safeguard liquid assets. Strong cash controls reduce fraud risk and ensure accurate cash balances.

Lesson 3 • Inventory Valuation Methods

Compares FIFO, LIFO, weighted average, and specific identification for costing inventory. The chosen method affects both cost of goods sold and ending inventory on financial statements.

Lesson 1 • Depreciation Methods

Applies straight-line, declining balance, and units-of-production depreciation to tangible assets. Each method produces different expense patterns that affect reported profit.

Lesson 2 • Disposal and Impairment of Assets

Records gains and losses on asset sales, retirements, and exchanges, and tests for impairment. Proper disposal accounting removes assets from the books at the correct carrying amount.

Lesson 3 • Current and Long-Term Liabilities

Covers notes payable, accrued liabilities, warranties, and contingent liabilities for the balance sheet. Accurate liability recognition ensures obligations are not understated.

Lesson 4 • Bonds and Long-Term Debt

Explains bond issuance at par, premium, and discount using the effective interest method. Students amortize bond premiums and discounts over the life of the debt.

Lesson 1 • Corporate Capital Structure

Introduces authorized, issued, and outstanding shares, and distinguishes common from preferred stock. Understanding capital structure is prerequisite to recording stock transactions.

Lesson 2 • Issuing Stock and Treasury Stock

Records stock issuances above and below par, and accounts for treasury stock purchases and reissuances. These entries directly affect the paid-in capital and retained earnings balances.

Lesson 3 • Dividends and Retained Earnings

Covers cash dividends, stock dividends, and stock splits, and their effect on retained earnings. Accurate dividend accounting is essential for the statement of changes in equity.

Lesson 1 • Cash Flow Statement Analysis

Distinguishes operating, investing, and financing cash flows and evaluates free cash flow. Cash flow analysis reveals earnings quality beyond what accrual-based ratios show.

Lesson 2 • Horizontal and Vertical Analysis

Applies percentage change analysis across periods and common-size analysis within a single period. These techniques reveal trends and structural shifts not visible in raw numbers.

Lesson 3 • Solvency and Leverage Ratios

Evaluates debt-to-equity, interest coverage, and debt ratio to assess long-term financial risk. Solvency analysis completes the picture of overall financial health.

Lesson 4 • Liquidity and Efficiency Ratios

Calculates current ratio, quick ratio, receivables turnover, and inventory turnover to assess short-term health. These ratios signal a firm's ability to meet near-term obligations.