In the introduction to business accounting the basics of financial accounting are covered: the various financial statements, the double entry method, two main principles of accounting (revenue recognition and matching principle). Furthermore, lessons on common topics related to the balance sheet (inventory, accounts receivables, long term assets, liabilities and equity) are included. It concludes with a section on the cash flow statement.
In some of the sections of this introduction, accounting regulation such as International Financial Reporting Standards (IFRS) is mentioned. This introduction is not meant to cover accounting principles in detail.
|Financial statements||The balance sheet, The income statement, The cash flow statement, The statement of retained earnings, Relations between the financial statements|
|Double entry bookkeeping||A simplified accounting method using the accounting equation, The use of T-accounts, The double entry method, From transactions to financial statements|
|Accrual accounting||Accrual accounting: allocating cash flows to periods, Two main principles of accrual accounting|
|Inventory||Inventory systems, Cost flow assumptions|
|Accounts receivable||Uncollectibility of accounts receivable, Direct write-off method, Percentage of sales method, Ageing of accounts method|
|Long term assets||Purchase (or development) of long term assets, Depreciation methods, Change in estimates, Sale of long term assets|
|Liabilities||Liability: definition, Warranty liability, Long term liabilities, Bonds, Financial lease|
|Equity||Par and no par shares, Treasury shares, Cash dividend, Share dividend, Share split, Dividend preferred shares|
|The cash flow statement||Creating the cash flow statement|