Crash course: Basics of Accounting and Finance

Record, summarize, analyze, and classify financial transactions through the four stages of the accounting process. Source documents like quotations and invoices drive ledgers and the financial statement.

A transaction changes business records through exchanges of goods or services, as cash transactions with immediate payment or credit transactions creating receivables and payables.

Explore how bank and business records mirror each other through deposits and withdrawals, showing how debits and credits affect assets and liabilities from both perspectives.

Explore the double entry bookkeeping system and learn how debits and credits affect assets, capital, and journal entries through practical examples of owner investments.

Learn to prepare and balance ledger accounts, track debits and credits in T accounts, and transfer balances to trial balance.

Explore the income statement format, also known as the trading and profit or loss account. Learn how net sales minus cost of sales and expenses determine gross and net profit.

Learn what's next with Fundamentals of financial accounting, covering pillars of accounting, financial statements, double entry bookkeeping, source documents, and ledger accounts and trade balances.