Learn Accounting. Understand Business.

Compare cash basis and accrual basis accounting, focusing on when transactions are recorded, inventory and receivables, and revenue recognition.

Identify financial transactions and record them as journal entries with debits and credits; post to the general ledger, build a trial balance, and apply adjusting entries to prepare financial statements.

Learn how to manage inventory for manufacturers and retailers using perpetual or periodic systems and the FIFO, LIFO, and weighted average methods to value and sell goods.

Explains how to account for sales, including cash and credit, sales returns, discounts, and the allowance for doubtful accounts using gross and net methods, plus aging and percentage approaches.

Learn to perform a bank reconciliation by comparing the ending balance per your books with the bank, adjusting for outstanding checks, deposits in transit, and service charges.

Learn how to classify workers as employees or independent contractors and manage payroll taxes, including FICA, federal and state withholding, and payroll entries.

Explore the three balance sheet categories: assets, liabilities, and owners' equity, and learn how to allocate asset purchases, recognize depreciation and amortization, and handle gains, losses, and stock transactions.

Explore depreciation concepts for assets like buildings and equipment, and compare straight-line with accelerated methods such as double-declining balance and units of production, including cost, salvage value, and useful life.

Master how to translate journal entries into a trial balance and verify debits equal credits. Organize assets, liabilities, equity, revenue, and expenses for end-of-period financial statements.

Learn how adjusting entries bridge the accounting cycle between recorded activity and actual results, balancing assets and liabilities with prepaid expenses, depreciation, interest, and revenue earned but not yet recorded.

Prepare and analyze the four main financial statements—balance sheet, income statement, cash flow statement, and retained earnings—using adjusting entries and a trial balance.

Close out temporary accounts by debiting revenue and expenses to income summary, transfer net to retained earnings, and reset the trial balance for the new cycle.

Learn to use ratio analysis to assess profitability, liquidity, and efficiency. Examine gross margin, profit margin, ROA, ROE, current and quick ratios, asset turnover, inventory turnover, and accounts receivable turnover.