Financial Accounts: preparation and analysis | 2017 | Alison

Fundamentals of Financial Accounting - Revised 2017

Learn how to record, classify, and summarize your business transactions correctly with this free accounting course.

Free Course
This free online fundamentals of financial accounting course will teach you financial reporting procedures that will give your accounting career a solid boost. Financial accounting is the bedrock of valuable company information and helps provide accurate data to external parties such as investors, creditors, and tax authorities. It also helps company managers and supervisors make important and sound financial decisions.
  • Assessment

  • Certification

  • Responsive

  • Publisher






View course modules


This course will first introduce you to the fundamentals of accounting including the key information and ratios used in accounting processes. You will then learn about the issues that common accounting procedures are usually applied to. You will study balance day adjustments, depreciation, cash budget, variance reports, and control accounts. The course will also discuss cash flow statements as well as the profit and loss statement, which is a combined report of the cash flow statement, profit and loss statement, and the balance sheet.

Next, the course will teach you how to prepare profit and loss statement reports using both vertical and horizontal classifications. You will learn that the multi-column profit and loss statement must indicate both gross margin and contribution margin and that expenses should be classified. Finally, you will study the 12 main areas where risks for small businesses come from as well as look into the management of stock recording and valuation.

Financial accounting essential for every business in the world. It provides a systematic record of all financial transactions of a firm which can be readily available for investors, creditors, and tax purposes. Such systematic recording requires special skills and knowledge. By taking this Fundamentals of Financial Accounting online course, you will gain the essential knowledge of budgeting, managing cash flow, preparing profit and loss statements, and accounting for depreciation that you need to boost your accounting career. All this, for free.

Start Course Now

Learning Outcomes

Having completed this course you will be able to:

  • List key tasks in preparing your accounts.
  • Identify the main accounting ratios.
  • Discuss the need to analyse your accounts.
  • Explain how to prepare a profit and loss statement.
  • Explain what the cash flow statement is used for.
  • Eiscuss the risks the small business may encounter.
  • Discuss the process for recording stock.
  • Discuss the different ways of depreciating stock.


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.



    You have received a new notification

    Click here to view them all