Accounting Theory and Principles Free Online Course | Alison

Accounting Theory

Gain better insight into the theory and underlying assumptions of accounting with this free online course.

Free Course
This free online accounting course will introduce you to the body of theory that underlies accounting procedures. It puts the core practices and principles, covered in the previous courses, into a larger framework of theoretical concepts. It will also teach you about the theory behind the accounting process and will help you make decisions in diverse accounting situations with the logical framework it provides for accounting practices.





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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.

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Learning Outcomes

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:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
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An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certificates for completed Certificate courses:

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All Certificates are available to purchase through the Alison Shop. For more information on purchasing Alison Certificates, please visit our FAQs. If you decide not to purchase your Alison Certificate, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certificate pricing, please visit our Pricing Page.


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