Accounting, Financial and Cash Flow Analysis

Understand the fundamental principle of debit and credit in accounting and why banking meanings differ, preparing you to apply dr and cr correctly.

Explore how t-accounts illustrate double-entry bookkeeping, recording debits and credits on the left and right to show revenue and cash transactions in the ledger.

Visualize the five steps of the accounting cycle from transactions to financial statements. Connect journal entries, general ledger, and trial balance to prepare the income statements and balance sheets.

Learn the four financial statements every student, professional, and business owner should know: income statement, balance sheet, cash flow statement, and changes in equity, with notes explaining each item.

Explore the income statement with revenue, costs, and expenses to reveal profit or loss, and examine the statement of financial position, assets, liabilities, and equity, plus the cash flow statement.

Explore how revenue is calculated as units sold times price and recognized when earned on income statements. Learn accrual accounting, why cash collection differs, and why advance payments are liabilities.

Explore the statement of financial position, or balance sheet, showing assets, liabilities, and shareholders' equity at a date. Balance assets with liabilities and shareholders' equity to reflect the accounting equation.

Explore the balance sheet's elements: assets ordered by liquidity—from cash and cash equivalents to accounts receivable, inventory, and fixed assets, with current and long-term liabilities like accruals and deferred revenue.

Explore shareholders equity as the net assets of a business, formed by share capital and return earnings, and see how assets balance liabilities and equity on the balance sheet.

Assets must equal liabilities plus equity, funded by loans and investor equity, demonstrated through car and building examples and retained earnings.

Learn the debit and credit logic across assets, liabilities, and equity, and see how revenue, expenses, and dividends from the income statement affect retained earnings.

Explore how debit and credit relate to assets, liabilities, and shareholders' equity, and how revenue, expenses, and dividends influence retained earnings on the balance sheet.

Understand how debit and credit entries affect retained earnings and shareholder equity, with revenue credited and expenses debited, reducing distributable profits.

Explore how debit and credit operate in practical journal entries, showing revenue as a credit that increases shareholders' equity and cash or receivables as debits that grow assets.

Contra accounts offset other balances within a category, reversing debit and credit effects to show net accounts receivable after customer returns, illustrated by a $350 sale and $100 return.

Apply the five steps of the accounting cycle from transactions to financial statements using practical examples, journal entries, the general ledger, and a trial balance.

Explore part two of practical accounting examples, applying revenue recognition, cash inflows, inventory and cost of goods sold calculations, and expense recording through real January transactions.

Prepare a general ledger by extracting closing balances from each ledger, organizing revenue and cost of goods sold under headings, and using sumif formulas to compute debit and credit totals.

Build a trial balance from the general ledger using controlled accounts with debit and credit, ensuring debits equal credits, then classify accounts into balance sheet and profit and loss.

Learn to construct financial statements from the trial balance by linking closing balances to income statement and balance sheet. Align assets, liabilities, and shareholders' equity to balance the books.

Distinguish profit from cash flow and learn why cash flow matters more. Master cash flow management and the cash flow statement to prevent distress and improve small business survival.

Compare cash and accrual accounting to show why profits do not guarantee cash. Explain cash flow dynamics, revenue recognition, and the matching principle that align profit with actual cash.

Illustrates accrual basis accounting with practical examples, showing revenue recognized on invoice before cash receipt and the risk of negative cash flow and customer defaults.

Explore how depreciation allocates asset costs over useful life, creating cash outflow upfront but gradual profit recognition, and illustrate matching concepts with machinery and inventory examples.

Master cash flow management by tracking all inflows and outflows, delaying outflows, and incentivizing customers to pay quickly to convert profits into cash for growth.

Develop a budget by allocating annual expenditures and tracking variances to safeguard cash flow. Protect credit, manage inventories, preserve cash reserves, and engage accountants to anticipate growth costs.