GAAP Accounting Course

Lesson 1 • The Accounting Equation and Double Entry

Introduces Assets = Liabilities + Equity and the mechanics of double-entry bookkeeping. Students practice recording transactions that keep the equation balanced.

Lesson 2 • Core Accounting Principles and Assumptions

Defines the ten foundational principles and four key assumptions that govern GAAP. These concepts anchor every subsequent topic in the course.

Lesson 3 • Chart of Accounts and Account Classification

Explains how accounts are organized, numbered, and classified within a chart of accounts. Proper classification is prerequisite to accurate financial statement preparation.

Lesson 1 • Reversing Entries and Period Management

Introduces optional reversing entries that simplify the next period's bookkeeping. Students evaluate when reversals are appropriate and how they affect account balances.

Lesson 2 • Adjusting Entries Under GAAP

Explains accruals, deferrals, depreciation, and other period-end adjustments required by GAAP. Adjustments ensure revenues and expenses are recognized in the correct period.

Lesson 3 • Journals and the General Ledger

Covers recording transactions in specialized and general journals, then posting to the general ledger. Accurate posting is the backbone of reliable financial data.

Lesson 4 • Adjusted Trial Balance and Closing Entries

Builds the adjusted trial balance from corrected ledger data and executes closing entries. Students reset temporary accounts and prepare for the next accounting period.

Lesson 1 • Statement of Cash Flows

Explains the three activity sections and both direct and indirect preparation methods. Students reconcile net income to operating cash flows and classify investing and financing items.

Lesson 2 • Balance Sheet Classification and Presentation

Details classified balance sheet structure, ordering rules, and required disclosures. Proper classification distinguishes current from long-term items and affects ratio analysis.

Lesson 3 • Notes to Financial Statements

Identifies mandatory and voluntary disclosures that accompany the primary statements. Adequate disclosure is a GAAP requirement that prevents misleading financial reporting.

Lesson 4 • Income Statement Structure and Content

Covers single-step and multi-step income statement formats and required line items. Students learn how revenue, cost of goods sold, and operating expenses are presented.

Lesson 1 • The Five-Step Revenue Model

Introduces the authoritative five-step framework for recognizing revenue from contracts. Each step is defined and illustrated with straightforward examples before complex cases.

Lesson 2 • Industry-Specific Revenue Scenarios

Applies the five-step model to licenses, long-term construction, and subscription arrangements. Students adapt the general model to transactions with unique recognition challenges.

Lesson 3 • Contract Assets, Liabilities, and Costs

Explains how to record contract assets, contract liabilities, and incremental contract costs. These balance sheet items arise directly from the five-step model.

Lesson 4 • Variable Consideration and Constraints

Addresses discounts, rebates, refunds, and other variable elements in transaction pricing. Students apply the constraint test to avoid significant revenue reversals.

Lesson 1 • Cash, Receivables, and Short-Term Investments

Covers cash management, accounts receivable valuation, and classification of short-term investments. Proper measurement of liquid assets directly affects working capital analysis.

Lesson 2 • Depreciation Methods and Impairment

Applies straight-line, declining balance, and units-of-production depreciation methods. Students also test assets for impairment and record write-downs under GAAP.

Lesson 3 • Inventory Valuation Methods

Compares FIFO, LIFO, weighted average, and specific identification under GAAP. Students calculate cost of goods sold and ending inventory under each method.

Lesson 4 • Property, Plant, and Equipment

Addresses capitalization criteria, cost determination, and subsequent measurement of PP&E. Students distinguish capital expenditures from repairs and record asset disposals.

Lesson 1 • Lease Accounting Under GAAP

Distinguishes operating from finance leases and applies lessee accounting rules. Students record right-of-use assets, lease liabilities, and periodic lease expense.

Lesson 2 • Contingencies and Provisions

Applies the probable-and-estimable threshold for recognizing loss contingencies. Students distinguish accrued liabilities from disclosed-only contingencies.

Lesson 3 • Stockholders' Equity Transactions

Records stock issuances, treasury stock, dividends, and stock splits under GAAP. Students maintain accurate equity accounts and prepare the equity section of the balance sheet.

Lesson 4 • Long-Term Debt and Bond Accounting

Covers issuance, amortization, and retirement of bonds and long-term notes. Students apply the effective interest method to premium and discount amortization.

Lesson 1 • Deferred Tax Assets and Liabilities

Calculates deferred tax balances using enacted future tax rates and the asset-liability method. Students record deferred tax entries and classify them on the balance sheet.

Lesson 2 • Income Tax Provision and Disclosure

Prepares the complete income tax provision including current and deferred components. Students draft required footnote disclosures including rate reconciliation tables.

Lesson 3 • Temporary vs. Permanent Differences

Distinguishes items that reverse over time from those that never affect taxable income. Understanding this distinction is prerequisite to deferred tax computation.

Lesson 1 • Financial Ratio Analysis Under GAAP

Applies liquidity, solvency, profitability, and efficiency ratios to GAAP-based statements. Students interpret ratios in context and identify distortions from accounting choices.

Lesson 2 • Earnings Per Share Calculations

Computes basic and diluted EPS including the effects of options, warrants, and convertibles. Accurate EPS is a key metric for investors and a required GAAP disclosure.

Lesson 3 • Business Combinations and Consolidations

Applies acquisition method accounting to business combinations and prepares consolidated statements. Students eliminate intercompany transactions and allocate purchase price.

Lesson 4 • Earnings Quality and Accounting Policy Choices

Identifies red flags in financial statements and evaluates management's accounting policy choices. Students distinguish aggressive from conservative reporting and assess earnings sustainability.