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.