Basic Accounting Concepts

Accounting is a vital activity in any business and is carried out, to some extent, in companies of every size. It is often referred to as the ‘language of business’, as it helps to track, analyse and communicate business activity. However, you must understand some vital concepts like double-entry bookkeeping and financial statements to record and interpret financial information. This short course will explain these critical concepts, starting with discussing the role and importance of accounting.

Next, you will learn about accounting standards and essential notions like the ‘going concern’ principle and ‘accrual concept’. You will also learn about double-entry bookkeeping and the process involved in accounting for inventory, drawings and expenses. Following this, you will research the equations used and the components of a balance sheet. We explain the income statement in detail and you will learn about its features like the net income, interest and expenses.

We will introduce you to trial balance and comprehensive income, financial position and cash flow statements. Finally, you will learn about budgeting and auditing in business. Whether you are a small business owner, a new bookkeeper or a prospective or seasoned accountant, the information contained within this course will help you understand the role and concepts of accounting or serve as a reference document for important business information. Start now and learn the basic accounting concepts in under three hours.