Learn Basic Accounting in this free online CIMA-accredited course
This course employs models and examples to provide an intuitive understanding of the principles of accounting and finance to train you to keep your own books.
This course provides the building blocks of accounting and employs innovative business simulations to explain concepts like revenue, costs, assets and liabilities. We show you how the ?accrual? principle creates a fundamental difference between profit and cash flow and how double-entry bookkeeping ensures that the ledger is always balanced. This course covers financial statements, accounting terminology and more.
What You Will Learn In This Free Course
The Accrual Principle
In this module you will start at the very beginning and learn how the accrual principle creates a fundamental difference between revenue and cash receipts. The accrual principle is the reason that accounting requires estimation and judgement rather than just the process of recording transactions.
Revenue and Cash
In this module you will learn the concepts of accounting transactions and balances. You will use the first interactive model to explore the relationship between revenue, the receivables balance and cashflow.; Module
Assets and Liabilities
In this module you will use another interactive model to explore how the timing difference between incurring costs and paying for them creates a payables balance. You will learn that assets and liabilities are different types of accounting balances and understand how they are created.
Equity
In this module you will use another interactive model to explore what the profit and loss account is. You will learn about the concept of equity. You will understand why the balance sheet always balances due to double-entry bookkeeping.
Financial Statements
This topic introduces the format of the 3 main financial statements: the profit and loss statement, balance sheet and cashflow statement. You will learn what information is contained in each statement and how the different financial statements are connected. You will learn techniques such as simple trend and profitability analysis in order to interpret the financial information.
Course assessment
