Accounting for Digital Assets, Cryptocurrency and Blockchain

Develop bookkeeping skills by executing basic accounting procedures within the accounting cycle and applying the double entry system to record sales, purchases, payments, and other receipts.

Identify transactions and record them in the journal, then post to the general ledger, prepare unadjusted and adjusted trial balances, and finalize financial statements before closing the books.

The double entry system records each transaction in two accounts, a debit and a credit. It ensures debits equal credits, illustrated by a $5,000 loan increasing cash and liabilities.

Balance accounts at period end using double-entry, compare debit and credit totals, and determine the balancing figure. Record balance CD and balance BD with proper dates to prepare financial statements.

Explore how sales, purchases, payments, and receipts flow through the accounting system, affecting income statements. Apply double-entry principles to record transactions and reflect cash flow and asset changes.

Apply double-entry bookkeeping to cryptocurrency transactions to ensure financial accuracy, transparency, and compliant reporting, by setting up crypto asset, cash, revenue, and gain/loss accounts, and automating tax-ready records.

Learn how cryptocurrency wallets store keys and manage transactions, including custodial and non-custodial options. Wallets automate transaction history, gains and losses, and tax reporting, and sync with accounting software.

Compare cash basis and accrual basis accounting, explain revenue recognition and matching principles, and examine how GAAP, IFRS, and ethics shape accounting standards and compliance.

Explore how regulators like the SEC oversee the securities market and auditors, protect investors, and maintain fair markets, while the AICPA sets ethical and technical standards for CPA practice.

Explore ethical responsibilities in accounting, including truthful reporting and disclosure, avoiding manipulation, safeguarding confidential information, and building professional competence to sustain trust in the public and private sectors.

Classify crypto assets by purpose and functionality—cryptocurrencies, utility tokens, security tokens, stablecoins, NFTs, wrapped tokens, privacy coins, mining tokens, and hybrid tokens—and apply nine criteria to assess risk and value.

FASB sets accounting standards for digital assets, guiding reporting, valuation, and disclosure of cryptocurrencies, NFTs, and stablecoins, while addressing balance sheet classification, impairment, and regulatory considerations.

Explore IFRS and FASB roles in digital assets, detailing recognition, valuation, and reporting; cover classification as intangible or financial assets, volatility, impairment, and disclosures for crypto, NFTs, and stablecoins.

Classify digital assets for tax, and distinguish capital gains from ordinary income. Identify taxable events, track cost basis, and report on US forms like 8949 and Schedule D.

Explore financial statements with a focus on the balance sheet, showing assets, liabilities, and equity. Apply the accounting equation assets equals liabilities plus equity to assess financial health.

Explore how an income statement summarizes revenue, cost of goods sold, gross profit, operating expenses, tax, and net profit using a three-step method: gross profit, operating profit, and net profit.

Learn how cash flow statements track operating, investing, and financing activities to assess liquidity and financial health, illustrated with ABC Limited's 2020 cash flows.

Classify digital assets as intangible, inventory, or investment assets and report them in the balance sheet, income statement, and cash flow statement using fair value or historical cost with impairment.

Classify assets: currency, tokens, security tokens, governance tokens, NFTs, and asset-backed tokens, and value them using cost of production, stock-to-flow, Metcalfe's law, token utility, and protocol revenue.

Explore e-commerce accounting fundamentals and apply core principles to online selling, accounting for platforms, fees, and transaction types in your business.

Record every ecommerce transaction and categorize sales, shipping, discounts, refunds, and fees; manage cogs, separate refunds from chargebacks, and use accounting software to stay tax compliant and forecast cash flow.

Discover how cryptocurrency payments work in ecommerce using digital wallets and blockchain, delivering lower fees, faster settlements, and secure, final transactions with major coins like Bitcoin, Ethereum, and stablecoins.

Understand how digital assets are taxed as property under the federal income tax code, triggering capital gains or ordinary income, with reporting requirements for individuals and brokers.

Apply impairment when market value drops below carrying value, lowering the asset to the lowest observable price; IFRS allows upward revaluation with reliable data, US GAAP does not.

Ensure regulatory compliance guides digital asset management by enforcing GDPR and HIPAA-aligned data protection, access controls, audit trails, consent management, and incident response.

Explore how smart contracts automate licensing, payments, and access control for digital assets and NFTs on blockchain, including ownership tracking, royalties, and enforceable conditions.