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Introduction to Accounting Basics Course

May 1, 2025

Accounting 101: The Basics - Accountingverse

Overview

This course provides free online tutorials that aim to build a solid foundation in accounting basics, vital for a career in accounting, finance, or managing a small business. It is suitable for beginners as well as those looking for a refresher.

Key Chapters

Chapter 1: Introduction to Accounting

  • Definition of Accounting: Explains what accounting is and its role in the financial world.
  • Purpose and Importance: Discusses why accounting is essential.
  • Users of Financial Information: Identifies who uses financial statements and accounting information.
  • Types of Accounting: Covers branches and fields of specialization.
  • Areas of Practice: Outlines different accounting practices.
  • Types of Businesses and Ownership: Details the forms of business and ownership.

Chapter 2: Fundamental Accounting Concepts

  • Basic Principles: Provides an understanding of fundamental accounting principles.
  • Elements of Accounting: Covers assets, liabilities, and capital.
  • Accounting Equation: Explains the accounting equation and how it balances.
  • Double Entry System: Introduction to the system of double-entry accounting.
  • Accounting Cycle: Discusses the 9-step process in the accounting cycle.

Chapter 3: The Financial Statements

  • Overview of Financial Statements: Discusses the preparation and importance of financial statements.
  • Key Statements:
    • Income Statement
    • Statement of Changes in Owner's Equity
    • Balance Sheet
    • Statement of Cash Flows

Chapter 4: Analyzing, Recording, and Classifying

  • Business Transactions: How to analyze and understand them.
  • Debit and Credit Rules: Explains the rules and differences between debit and credit.
  • Chart of Accounts: Introduction and examples.
  • Journal Entries: Recording of business transactions.
  • Trial Balance: Checking the equality of debits and credits.

Chapter 5: Adjusting Entries

  • Purpose of Adjusting Entries: Updates accounts for accruals, deferrals, depreciation, etc.
  • Types of Adjusting Entries: Accrued income and expenses, unearned income, prepaid expenses, etc.

Chapter 6: How to Prepare Financial Statements

  • Manual Preparation: Importance for accountants to prepare statements manually for better analysis.
  • Statement Preparation: Steps to prepare income statements, owner's equity, and balance sheets.

Chapter 7: Closing Entries

  • Year-end Procedures: Closing temporary or nominal accounts to prepare for the next period.

Chapter 8: Post-Closing Trial Balance

  • Final Step: Preparing a post-closing trial balance after closing entries are made.

Chapter 9: Reversing Entries

  • Optional Step: Preparing reversing entries at the start of a new accounting period for smoother processing.

Additional Resources

  • Other Courses: Financial Accounting, Management Accounting.
  • Miscellaneous Topics: Accounting certifications, the Big 4 accounting firms.

Conclusion

Accountingverse serves as an online resource for all things accounting, based on international financial reporting standards and US or local GAAP.


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