Accounting Cycle

Name: Accounting Cycle
Rating: 4.3 (23 reviews)

“Master the Accounting Cycle: From Journal Entries to Financial Statements — Step by Step for Beginners”

Created bySavvas Chatzopoulos ,MSc,ACCA Finalist

Last updated 8/2025

English

English [Auto],

What you'll learn

Understand the full structure of the accounting cycle and its step-by-step process.
Identify and analyze the key elements that make up the financial statement
Learn about the closing process
Build a solid foundation in accounting entries from scratch, including how to determine which accounts are debited and which are credited.
Gain practical knowledge of adjusting entries and contra accounts, and understand their role in presenting an accurate financial picture.

Course content

4 sections • 14 lectures • 1h 22m total length

Trailer1:28
Explore the accounting cycle and how financial statements are prepared through concise, example-driven lessons, practice questions, and two exercise files to build a solid foundation.

Introduction to Accounting Cycle14:40
Explore the accounting cycle as a process of recording, classifying, summarizing, and reporting financial activities through journals and ledgers, yielding income statements, balance sheets, and cash flow statements.
What is Trial Balance4:05
Explore the trial balance, an internal accounting report listing all general ledger accounts and their balances to verify arithmetic accuracy and support financial statements.
Adjusting Entries7:21
Adjusting entries align revenues and expenses with the accrual basis at period end. Cover prepaid expenses, unearned revenues, accrued revenues, accrued expenses, and depreciation to ensure accurate financial statements.
Preparation of Adjusted Trial Balance2:59
Apply adjusting entries, including depreciation of fixed assets, prepaid expenses, and accrued revenues, post to the ledger, and ensure the adjusted trial balance has debits equal credits for final statements.
Preparation of Financial Statements3:06
Present the preparation of financial statements as the final step of the accounting cycle, detailing balance sheet, income statement, cash flow statement, and notes to the financial statements.
Accounting Closing Process at the end of period3:31
Close revenue and expense accounts to retained earnings, zeroing temporary accounts. Update retained earnings with net profit or loss and transfer to equity, and close the dividend account if applicable.
Quiz-Part 1

Introduction to Accounting Entries4:08
Explore how accounting entries record every transaction with dual debits and credits across asset and liability accounts, supporting accurate financial statements and tracking income, expenses, and net position.
Assets2:06
Identify asset concepts and classifications to determine debits and credits, distinguishing current assets from fixed assets with examples like bank accounts, inventory, and intangibles.
Liabilities1:43
Discover how liabilities are obligations to third parties arising from past transactions, such as credit purchases, and classify them into short-term and long-term categories with examples.
Equity1:36
Explains net worth and equity by defining assets minus liabilities and the capital owned by owners, including paid up capital, profit or loss, reserves, and revaluation effects.
Contra Accounts5:34
Understand how contra accounts offset asset, liability, and equity values to show a more accurate balance sheet, with examples like accumulated depreciation, discount on bonds payable, and treasury stock.
Quiz -Part 2

Analysis of ABC Company8:14
Analyze abc company's balance sheet by detailing non-current and current assets (machinery, buildings, inventory, cash, and software) and equity and liabilities, including share capital, reserves, and short- and long-term loans.
Accounting Entries throughout the Year + Adjusted Trial Balance+2 downloads22:13
Explore a year of month-by-month accounting entries for metals trading, covering purchases, sales, VAT, depreciation, provisions, prepayments, and ending with the adjusted trial balance.

Requirements

No prior accounting experience is required — only a willingness to learn and curiosity for knowledge.
No prerequisites — come with an open mind, determination, and a passion for learning.

Description

Course Description

Build a rock-solid foundation in financial accounting—from the first transaction to the final financial statements. In this hands-on course, you’ll master the full accounting cycle: identifying and documenting transactions, recording journal entries, posting to the ledger, preparing the trial balance, making adjusting entries (accruals, deferrals, depreciation), producing the adjusted trial balance, and completing the financial statements. You’ll also learn the closing process, how contra accounts work and how to analyze a complete Balance Sheet using a realistic case study (ABC Company).

No fluff—just clear structure, practical examples, and step-by-step entries that mirror real bookkeeping and reporting under IFRS/GAAP logic.

What you’ll learn

Understand the structure and purpose of the accounting cycle and how each step connects to reliable financial reporting.
Record transactions correctly using double-entry accounting (what to debit, what to credit, and why).
Differentiate journals vs. ledgers, post entries, and reconcile balances.
Prepare trial balances (unadjusted & adjusted) and detect common errors.
Create adjusting entries (prepaid/unearned, accrued revenues/expenses, depreciation) and apply contra accounts properly.
Prepare the Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Changes in Equity.
Execute the closing process and roll balances into Retained Earnings.
Analyze a full Balance Sheet (ABC Company) and practice month-by-month entries (sales, purchases, VAT, loans, payroll-style items, provisions, asset purchases/disposals, prepayments, and more).

Who this course is for

Beginners who want to learn accounting from scratch, step by step.
Students seeking a clear, structured introduction aligned with real-world practice.
Entrepreneurs & small business owners who want to understand their numbers and speak the language of accountants.
Career-changers or junior finance/admin staff who need practical bookkeeping skills.

Prerequisites

No prior accounting experience required—just determination and a willingness to learn.

This course includes

Plain-English explanations with worked journal entries and T-account logic.
ABC Company case study with a complete Balance Sheet and monthly events.
Practical coverage of contra accounts (Accumulated Depreciation, Discounts, Treasury Stock, Discount on Bonds/Notes Payable).
End-of-section checks to reinforce concepts (trial balance prep, adjustments, and closes).

What you’ll do in the course (high-level outline)

Introduction to the Accounting Cycle: purpose, importance, and compliance.
Source Documents & Journals: capturing and recording transactions.
Posting to the Ledger: organizing by account and tracking balances.
Trial Balance (Unadjusted): arithmetic checks and error spotting.
Adjusting Entries: accruals, deferrals, depreciation; Adjusted Trial Balance.
Financial Statements: Income Statement, Balance Sheet, Cash Flow, Equity.
Closing Entries: resetting temporary accounts; link to Retained Earnings.
Case Study—ABC Company: interpret the Balance Sheet; record monthly transactions (sales with VAT, collections, supplier payments, taxes, loans, interest, provisions, returns, prepayments, depreciation, asset purchases/disposals, subscriptions).
Wrap-Up & Best Practices: accuracy, documentation, and transparency.

By the end, you’ll be able to record, adjust, close, and report with confidence—turning raw transactions into clean, decision-ready financial statements.

Why take this course

This course makes accounting simple, practical, and clear. You’ll learn step by step how to record, adjust, and close accounts, and prepare real financial statements.

Enroll now and gain the skills to understand and manage accounting with confidence.

Who this course is for:

Beginners who want to learn accounting from scratch.
Students who need a clear and structured introduction to accounting principles.
Entrepreneurs and small business owners who want to understand their financial statements.
Anyone curious about how accounting entries, financial statements, and the accounting cycle work.

Accounting Cycle

What you'll learn

Explore related topics

Course content

Trailer1 lecture • 1min

Part 1-Accounting Cycle6 lectures • 36min

Part 2-Accounting Entries5 lectures • 15min

Part 3-Case Study + 2 downloadable Solved Files with exercises2 lectures • 30min

Requirements

Description

Who this course is for: