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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