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Accounting and Its Use in Business Decisions Course


Accounting and Its Use in Business Decisions
Accounting and Its Use in Business Decisions

Learn about accounting and its use in business decisions.


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Course Description

In this free online accounting course you will be introduced to accounting and its use in making business decisions. You will learn how to identify and describe the three basic forms of business organizations, and also distinguish among the three types of activities performed by business organizations. The course then describes the content and purposes of the income statement, statement of retained earnings, balance sheet, and statement of cash flows. You will learn about the basic accounting equation and describe its relationship to the balance sheet. The course then shows you how to prepare an income statement, a statement of retained earnings, and a balance sheet, and also how to analyse and use the financial results—the equity ratio. This free online accounting course will be of great interest to entrepreneurs and business professionals who would like to get a thorough introduction to accounting principles, and to any learner who is interested in accounting as a future career.

CERTIFICATION

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LEARNING OUTCOMES

Learning Outcomes:
- Identify and describe the three basic forms of business organizations.
- Distinguish among the three types of activities performed by business organizations.
- Describe the content and purposes of the income statement, statement of retained earnings, balance sheet, and statement of cash flows.
- State the basic accounting equation and describe its relationship to the balance sheet.
- Using the underlying assumptions or concepts, analyze business transactions and determine their effects on items in the financial statements.
- Prepare an income statement, a statement of retained earnings, and a balance sheet.
- Analyze and use the financial results—the equity ratio.

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Course Rating (By Learners): 3 stars based on 359 votes
Course Title: Accounting and Its Use in Business Decisions
Course #: 559
Course Publisher: Global Text Project
Course Category: 9
Content Origin:
Course Description: In this free online accounting course you will be introduced to accounting and its use in making business decisions. You will learn how to identify and describe the three basic forms of business organizations, and also distinguish among the three types of activities performed by business organizations. The course then describes the content and purposes of the income statement, statement of retained earnings, balance sheet, and statement of cash flows. You will learn about the basic accounting equation and describe its relationship to the balance sheet. The course then shows you how to prepare an income statement, a statement of retained earnings, and a balance sheet, and also how to analyse and use the financial results—the equity ratio. This free online accounting course will be of great interest to entrepreneurs and business professionals who would like to get a thorough introduction to accounting principles, and to any learner who is interested in accounting as a future career.
License: This course is available from Global Text Project OpenCourseWare through the following Creative Commons licence:
Creative Commons License
Release Date: 18 July 2013
Content  
Course Duration (Avg Learner): 3-4 Hours
Video/Audio: None
Audio Only: None
Animation: None
Assessments: Yes
Education Level
Age appropriateness: 18+ Years
Minimum Grade/Class Level:
Validation: Level 5
ALISON Testing: Yes
Certification Availability
PDF Download: Yes
Parchment: Yes
Framed Certification: Yes

Study for Free at Your Own Pace! Start This Course

  • Evelyn Mwika
    Evelyn Mwika Kenya Accounting is the process of identifying, measuring, and communicating economic status of a business to allow users make informed judgement and decisions. Accounting in general as two major classes: (I) the financial accounting and the managerial accounting. Financial accounting focuses on the financial statements, which are shared by stakeholders, lenders, financial analysts and public in general. Managerial accounting basis it attention on providing information within the entity.to help it operate more effectively on company’s managerial issues. Cost accounting and managerial accounting plays one bigger role of providing instructions on computing the cost of products at a manufacturing enterprise. Also additional cost systems based on behavior of cost of absorption, break even to achieve profit levels, budgeting on operations, capital and other relevant cost required in decision making activities pertaining costing and standard costing 2016-07-27 11:07:45
  • Rory Grobbelaar
    Rory Grobbelaar Zimbabwe This course was a lot tougher than I initially gave it credit for. I am an operations man with decent experience in accounting and decision making but I was trying to improve on the accounting front. This stretched me beyond what I thought I was capable of and is a good course - I thoroughly recommend it 2016-07-26 14:07:28
  • Evelyn Mwika
    Evelyn Mwika Kenya Accounting in business, plays a role of helping internal and external stakeholders make better business decisions,by (i) providing them with financial status of the entity. (ii)its also relays information that owners,managers,and investors need to do the company evaluation on financial performance. (iii)accountants work in oneof two major fields. management accounting and financial accounting. keeping you informed on the running of business and at the same time tells you how well you're running it 2016-07-26 11:07:27
  • tunde lawal
    tunde lawal Kenya Decisions have to be made by all individuals every day. Decision making arises because of the need to choose between alternatives. Careful consideration must be given to all information available at the time because of the long-term consequences a decision made now will have. There are four main steps in the decision-making process: (1) Identify each situation in which a decision is needed and determine the goals we wish to achieve. (2) Identify the relevant information needed to determine possible available alternatives. (3) Identify and obtain information needed to assess the consequences or outcomes of the alternatives. (4) Choose a course of action which will achieve the goals established in step 1. The nature of accounting and its main functions Accounting is a service activity. It uses words and symbols to communicate financial information useful for decision making. The terminology and symbols used have developed from the earliest known accounting records. As a profession, accounting has evolved in response to society’s need for economic information to help people make economic decisions. Accounting is often called the ‘language of business’. To be effective, the recipient must understand the message that the sender intends to convey. You must learn the meaning of the words and symbols used by accountants. Many people with little knowledge of accounting must interpret accounting data. Accounting has been defined as the process of identifying, measuring, recording and communicating economic information to permit informed judgements and economic decisions. The primary purpose of accounting is to help persons make economic decisions. In our society resources must be allocated among and within all kinds of entities. Accounting information provides the basis for making decisions about resource allocation. To be useful, data must be identified, measured, recorded, classified, summarised and communicated to potential users. These are the critical elements of accounting. Accounting information is financial information about economic activities. All economic entities (e.g. businesses, government agencies, families, charitable entities) need such information because it is used for making economic decisions about those entities. An economic event of an entity is referred to as a transaction. Transactions are of two types: external and internal. Computers have had a significant impact on the accounting process and hence the recording process is much more efficient and reliable. The potential users of accounting information The ultimate objective of accounting is to provide information in reports which can be used by internal and external decision makers. The preparation of this information for users (decision makers) outside the entity is called financial accounting. Such users might be investors, or creditors of the entity. The preparation of information for use by decision makers inside the entity to plan and control operations is called management accounting. 2016-07-22 17:07:04
  • Nomusa phahle
    Nomusa phahle South Africa Accounting it's mainly focused on helping businesses record all their financial expenditure and profits and losses it helps with the understanding of all journals used to record certain products or services of the business ventures, it is mostly dealing both financial calculation and less on theory 2016-06-26 22:06:55
  • Pakistan Accounting is a very important for every business.Because we calculate the all business document and amount with the help of accounting so that is a very simple to calculate and collect the file sometime we are uncareless and the affeect is we loss in business at the top off market.if we cant loss in our business than we know what is the accounting 2016-06-26 02:06:20
  • Martin Mancia
    Martin Mancia United States of America Very important information, if you are an accounting Clerk or Bookkeeper, very good reminders and problems solved. 2016-04-29 06:04:32
  • Daniel Sany
    Daniel Sany [[]] Accounting is a art of recording classifying summarising in a significant manner. 2016-04-14 13:04:43
  • Akshay Godhamgaonkar
    Akshay Godhamgaonkar India A good course for keeping the basics of accounting on toes... 2016-03-11 17:03:27
  • Audrey Moncayo
    Audrey Moncayo United States of America It was very thorough and enjoyed it alot! 2015-11-07 03:11:14
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Study for Free at Your Own Pace! Start This Course

Free, Online Accounting and Its Use in Business Decisions Course.