Applied Accounting Course

Lesson 1 • Source Documents and Transaction Evidence

Identifies the documents that initiate accounting entries and their role in audit trails. Connects documentary evidence to reliable recordkeeping practice.

Lesson 2 • Double-Entry Bookkeeping Mechanics

Explains debits, credits, and the rule that every transaction affects at least two accounts. Builds the mechanical skill needed for accurate journal entries.

Lesson 3 • Ethical Standards in Accounting Practice

Presents the professional ethics framework governing accountants, including integrity and objectivity. Establishes the behavioural baseline required throughout the course.

Lesson 4 • Chart of Accounts Structure

Covers how accounts are organised, numbered, and categorised within a business. Enables students to design and navigate a functional chart of accounts.

Lesson 1 • Adjusting Entries and Accrual Concepts

Records period-end adjustments for accruals, deferrals, and depreciation. Bridges cash-basis records to accrual-basis financial statements.

Lesson 2 • Posting to the General Ledger

Transfers journal entries to individual ledger accounts and maintains running balances. Demonstrates how the ledger becomes the central data store for reporting.

Lesson 3 • Closing Entries and Post-Closing Trial Balance

Resets temporary accounts to zero and transfers net income to retained earnings. Completes the cycle and prepares accounts for the next period.

Lesson 4 • Trial Balance Preparation and Analysis

Compiles account balances to verify mathematical equality of debits and credits. Introduces limitations of the trial balance as an error-detection tool.

Lesson 1 • Balance Sheet Construction

Organises assets, liabilities, and equity into a classified balance sheet. Demonstrates how the balance sheet reflects financial position at a point in time.

Lesson 2 • Statement of Cash Flows

Presents operating, investing, and financing cash flows using both direct and indirect methods. Reveals liquidity patterns not visible in accrual-based statements.

Lesson 3 • Financial Ratio Analysis

Applies liquidity, profitability, and solvency ratios to interpret financial statements. Develops analytical judgement for evaluating business health from reported data.

Lesson 4 • Statement of Changes in Equity

Tracks movements in retained earnings, share capital, and reserves across a period. Completes the set of primary financial statements for comprehensive reporting.

Lesson 1 • Accounts Receivable Recording and Valuation

Records credit sales and estimates uncollectible amounts using allowance methods. Maintains receivables at net realisable value on the balance sheet.

Lesson 2 • Revenue Recognition Principles

Applies the five-step revenue recognition model to diverse transaction types. Ensures students record revenue in the correct period under accrual accounting.

Lesson 3 • Accounts Receivable Reporting and Disclosure

Presents receivables on financial statements with required disclosures and aging schedules. Connects receivables management to liquidity analysis introduced in Chapter 3.

Lesson 4 • Notes Receivable and Interest Calculation

Accounts for formal promissory notes, including interest accrual and maturity collection. Extends receivables knowledge to interest-bearing instruments.

Lesson 1 • Inventory Classification and Costing Systems

Distinguishes merchandise from manufacturing inventory and periodic from perpetual systems. Establishes the framework for all subsequent inventory valuation work.

Lesson 2 • Cost Flow Assumptions: FIFO, LIFO, and Average Cost

Applies FIFO, LIFO, and weighted-average methods to compute ending inventory and COGS. Compares financial statement impact of each assumption under changing prices.

Lesson 3 • Inventory Estimation and Special Topics

Uses gross profit and retail inventory methods to estimate inventory without a physical count. Addresses consignment and goods-in-transit ownership questions.

Lesson 4 • Inventory Errors and Their Effects

Traces how misstatements in ending inventory distort COGS, net income, and equity. Develops error-detection skills critical for accurate period reporting.

Lesson 1 • Capital Expenditures vs. Revenue Expenditures

Distinguishes improvements that extend asset life from repairs that maintain current capacity. Prevents misclassification that distorts asset values and period expenses.

Lesson 2 • Disposal, Sale, and Intangible Assets

Records retirement, sale, and exchange of tangible assets and accounts for intangibles including goodwill. Completes the asset lifecycle from acquisition to derecognition.

Lesson 3 • Acquiring and Capitalising Long-Term Assets

Determines which costs to capitalise versus expense at acquisition of tangible assets. Applies the cost principle to buildings, equipment, and land purchases.

Lesson 4 • Asset Impairment and Revaluation

Tests assets for impairment and records write-downs when carrying value exceeds recoverable amount. Introduces revaluation as an alternative measurement model.

Lesson 1 • Equity Transactions: Shares and Dividends

Records issuance of common and preferred shares, treasury stock, and dividend declarations. Tracks changes in the equity section across reporting periods.

Lesson 2 • Long-Term Debt: Bonds and Notes

Issues, amortises, and retires bonds using effective-interest and straight-line methods. Connects long-term borrowing costs to interest expense on the income statement.

Lesson 3 • Current Liabilities Recognition and Measurement

Identifies and records accounts payable, accrued liabilities, and short-term notes payable. Ensures all obligations due within one year are properly recognised and disclosed.

Lesson 4 • Capital Structure Analysis and Leverage

Evaluates the mix of debt and equity financing using leverage and coverage ratios. Connects capital structure decisions to financial risk and cost of capital concepts.

Lesson 1 • Activity-Based Costing

Assigns overhead using multiple cost drivers to improve product cost accuracy over traditional methods. Reveals cross-subsidisation among products with diverse resource consumption.

Lesson 2 • Job-Order and Process Costing Systems

Assigns costs to individual jobs and to continuous production processes using appropriate costing systems. Enables accurate product cost determination for pricing and inventory valuation.

Lesson 3 • Variance Analysis and Performance Reporting

Computes and interprets material, labour, and overhead variances against standard costs. Translates variance data into actionable management reports for performance control.

Lesson 4 • Cost Behaviour and Cost-Volume-Profit Analysis

Classifies costs as fixed, variable, or mixed and applies CVP analysis to breakeven and profit planning. Provides the analytical foundation for all managerial decision tools.