Accounting Acumen Level 1: Basic Financial Accounting

Define business as revenue-driven activities: producing, buying, selling, and delivering services, highlighting inventory, cost of goods sold, assets, and cash flow across the supply chain.

Explain how reliable information, credibility, comparability, and completeness make general-purpose financial statements useful for investors and lenders, with audits ensuring true and fair presentation under IFRS or US GAAP.

Explore the income statement, its link to equity and retained earnings, and how revenue and expenses determine profit under IFRS 15, including cash flows and when expenses are incurred.

Explore how an income statement summarizes revenue and expenses to compute profit, including the treatment of cost of goods sold, inventory, and variable versus fixed costs.

This lecture outlines formats and names of financial statements, including balance sheet, income statement, changes in equity, and cash flows, with comparatives and earnings per share.

Identify and record business transactions by selecting debit and credit pairs for each event, using source documents and the inventory, cash, and accounts payable effects to prepare journal entries.

Explore how special journals streamline input in the accounting process, covering cash receipts, cash payments, sales on account, and purchases on account, with inventory, accounts receivable, and accounts payable subaccounts.

Learn how posting converts journal entries into financial information by transferring data from cash receipts and cash payments journals to the general ledger and subsidiary ledgers.

Demonstrates posting from the sales and purchases journals to the general ledger and subsidiary ledgers, detailing accounts receivable, sales revenue, cost of goods sold, inventory, and accounts payable steps.

Learn how to convert a trial balance into the income statement, balance sheet, and the statement of changes in equity, ensuring debits equal credits and accurate financial reporting.

Learn the accrual accounting basics, including revenue recognition and the matching principle, and how adjusting entries timing affects when revenues and expenses are recorded.

Learn how adjusting entries in accrual accounting recognize transactions at the correct timing, covering prepaid expenses, unearned revenue, and unpaid or unrecorded expenses plus uncollected or unrecorded revenues.

Close nominal and real accounts at year end by transferring balances to retained earnings, using journal entries for revenue, expenses, and dividends, linking income statements to the balance sheet.

Complete the full accounting process from recording transactions to preparing financial statements in this integrated assignment, practicing journals, ledgers, trial balance, adjusting and closing entries for ABC Corporation.

Integrated assignment walks you through recording December transactions across cash receipts, cash payments, sales, and purchases journals, posting to ledgers, and making adjusting entries.