Gain better insight into the theory and underlying assumptions of accounting with this free online course.
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CertificationView course modules
This course begins with an introduction to the traditional accounting theory. You will look into accounting concepts some of which are the accruals concept which states that revenue is recognized when earned, and expenses are recognized when assets are consumed, the economic entity concept which states that the transactions of a business are to be kept separate from those of its owners, the consistency concept which states that once a business chooses to use a specific accounting method, it should continue using it on a go-forward basis.
You will then look into accounting constraints or modifying principles which are used to modify accounting assumptions and accounting concepts to make accounting information in financial statements more useful for users. This course will also delve into the conceptual framework project of the Financial Accounting Standards Board. You will study the nature and content of a company's summary of significant accounting policies in its annual report, and a whole lot more!
Accounting concepts and principles are a set of broad conventions that have been devised to provide a basic framework for financial reporting. As financial reporting involves significant professional judgments by accountants, these concepts and principles ensure that the users of financial information are not misled by the adoption of accounting policies and practices that go against the spirit of the accountancy profession. Upon the completion of this course, you will have a better understanding of the concepts and principles of accounting useful in your accounting practice so make sure to check this course out today.
Module 1: Accounting Theory
Course Navigation and Prerequisites
Traditional Accounting Theory
Objectives of Financial Reporting
Basic Elements of Financial Statements
Recognition & Measurement in Financial Reporting
Module 2: Accounting Theory Assessment
Having completed this course learners will be able to:
- Identify and discuss the underlying assumptions or concepts of accounting;
- Identify and discuss the major principles of accounting;
- Identify and discuss the modifying conventions (or constraints) of accounting;
- Describe the conceptual framework project of the Financial Accounting Standards Board;
- Discuss the nature and content of a company's summary of significant accounting policies in its annual report.
All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:
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