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Basics of Accounting and Financial Statements
Free online course on the structure of balance sheets, profit and loss account elements, as well as inventory valuation.
Description
This free online course on the basics of accounting and financial statements will begin by introducing the three main streams of accounting which are financial management, and cost accounting. You will learn about financial statements which include a balance sheet, income statement, cash flow and shareholder’s equity. You will then learn about the two formats of a balance sheet; short and detailed, as well as the elements of a balance sheet.
This course will then discuss the different types of assets which are current assets, non-current assets and investments. You will learn about the types of fixed assets; tangible and intangible, as well as how the asset is calculated using the sum of liabilities and the owners’ fund. You will be introduced to the profit and loss accounts, as well as its components which are income and expenses.
Lastly, this course will teach you about the concept of conservatism and depreciation. You will learn about the different methods of providing depreciation which is the straight-line method, reducing balance method, machine hour method, and production units method. You will also learn about inventory valuation as the tangible property which is held for sale in the normal course of business. Start this course today and improve your knowledge of the basics of financial accounting.
Start Course NowModules
Introduction to Accounting and Financial Statements
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Introduction to Accounting and Financial Statements - Learning Outcomes
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Introduction and Scope of Accounting
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Financial Statements
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Formats of Balance Sheet
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Detailed Format and Elements of Balance Sheet
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Basic Structure of a Balance Sheet
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Types of Assets
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Balance Sheet Elements and Equation
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Introduction to Accounting and Financial Statements - Lesson Summary
Profit and Loss Account
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Profit and Loss Account - Learning Outcomes
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Format of Profit and Loss Account
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Basic Structure of Profit and Loss Account
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Elements of Profit and Loss Account
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Concept of Conservatism and Depreciation
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Methods of Providing Depreciation
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Inventory Valuation
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Profit and Loss Account - Lesson Summary
Course assessment
Learning Outcomes
On successful completion of this course you will be able to:
- Differentiate between the three streams of accounting.
- Explain the purpose of financial statements.
- Analyze the basic business model.
- Explain the purpose of a balance sheet.
- Explain the difference between tangible and intangible assets.
- Outline the equation for assets and owners fund.
- Outline the equation for calculating profit and loss.
- List the six categories of expenses in a profit and loss account.
- List the three qualitative characteristics of conservatism.
- List the causes of the depreciation of fixed assets.
- List the four methods of providing depreciation.
- Describe what is meant by inventory valuation.
Certification
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
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning
Alison offers 3 types of Certificates for completed Certificate courses:
Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping
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.
