Introduction to business accounting

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

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