Fundamentals of Business Accounting 1: Learn Quick and Easy

Understand the profit and loss statement, also called the income statement, which shows total income, costs, expenses, and net income to indicate profitability and sustainability over monthly, quarterly, annual periods.

Explore the structure of the p&l statement, detailing revenue, cogs, gross margin, opex, and key metrics like ebitda, ebit, ebt, and net profit.

Build and analyze a P&L statement using a donuts business example, calculating revenue, COGS, gross margin, OPEX, EBITDA, EBIT, and net profit, plus revenue growth rate.

Understand how a balance sheet presents assets, liabilities, and equity to reveal your business's financial health and solvency at a point in time.

Explore the balance sheet structure, including assets, liabilities and equity, current and long-term assets and liabilities, and learn how assets equal liabilities plus equity.

Learn to build and analyze a balance sheet by classifying current and long-term assets, liabilities, and equity. Balance assets with liabilities plus equity using a donuts company example.

Learn how to calculate depreciation and amortization for long-term assets using a vehicle example, determine gross and net book values, and compare linear and accelerated methods.

Learn how a cash flow statement tracks cash from operations, investing, and financing, and why cash flow differs from profit, with real-world examples and implications for debt and growth.

Explore the structure of the cash flow statement, detailing operating, investing, and financing activities, and learn terms like free cash flow, direct and indirect methods, and working capital.

Explore building and analyzing a cash flow statement using direct and indirect methods; examine CFO, CFI, and CFF with a donuts company example.

Apply the P&L principle by recognizing money-measured transactions and treating the business as separate from personal finances. Use accruals to match income with expenses over a period, not cash movements.

Explore balance sheet principles, including consistency concept, historical cost, prudence, provisions, and going concern, illustrated by stock and asset examples.

Explore the essentials of financial statements—P&L or income statement, balance sheet, and cash flow from operations, investing, and financing—and learn why profit does not equal cash.