In this course, the accounting equation that stands at the core of double entry accounting, that Assets = Liabilities + Shareholder Equity, is presented along with exercises to practice using it to categorize transactions. Also, an introduction to the basic financial statements, the income statement, the balance sheet and the cash flow statement, provides context to the accounting equation. Retained earnings is explained in simple, straight-forward terms, which will help the student with closing journal entries when presented in a subsequent course.
Course Series
This course is included in the following series:
11 CoursesBack to the Basics: Accounting Fundamentals
- Accounting Review: The Basics of Debits and Credits
- Transaction Analysis, T-Accounts, Debits and Credits, and Trial Balances
- Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
- The Accounting Equation and Financial Statements
- Bank Reconciliations, Cash, and Internal Controls
- Accounts Receivable Training: Bad Debts
- Equipment and Depreciation
- Inventory Costing
- Purchase and Sale of Inventory
- The Adjusting Process
- The Closing Process
Learning Objectives
- Identify the elements of the primary accounting equation, including defining assets, liabilities and shareholders equity
- Recognize various transactions and their impact on the accounting equation
- Discover how to prepare 3 of the 4 primary financial statements (income statement, statement of retained earnings, balance sheet)
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- 10. IAS 38 - Intangible Assets
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Prerequisites
No Advanced Preparation or Prerequisites are required for this course.