Assests, liablities and the accounting equation
Learn the principles of double entry bookkeeping and gain a thorough understanding of assets, liabilities, accounts payable, and accounts receivable. This course is essential for beginner accounting students and accountants looking to strengthen their knowledge in financial accounting.
Assets and liabilitiesThe accounting equationAccounts payable and accounts receivableDouble entry bookkeepingCapital expenditure and revenue expenditureIt is vital that you acquire a thorough understanding of the principles of double entry bookkeeping. These principles, outlined in this course, apply to both cash and credit transactions.The purpose of Course is to introduce the fundamentals of accounting, particularly the principles of double entry bookkeeping. It is essential that you understand the topics discussed in the next few chapters, as they form a basis for your studies of financial accountingWe will discuss following topics:Assets and liabilitiesThe accounting equationAccounts payable and accounts receivableDouble entry bookkeepingCapital expenditure and revenue expenditureThe accounting equation is a basic principle of accounting and a fundamental element of the balance sheet. The equation is as follows:Assets = Liabilities + Shareholder’s EquityThis equation sets the foundation of double-entry accounting, also known as double-entry bookkeeping, and highlights the structure of the balance sheet. Double-entry accounting is a system where every transaction affects at least two accounts.Journal entries often use the language of debits (DR) and credits (CR). A debit refers to an increase in an asset or a decrease in a liability or shareholders’ equity. A credit in contrast refers to a decrease in an asset or an increase in a liability or shareholders’ equity.The accounting equation forms the basis for the balance sheet. The balance sheet is also sometimes referred to as the statement of financial position. The balance sheet is broken down into three major sections and their various underlying items: Assets, Liabilities, and Shareholder’s Equity.Who this course is for:Beginner accounting student and accountants
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