Accounting Principles

Accounting is very important subject that convert all financial events of the business into figures which allow managers and other users to report, analyze, and take decisions that help to read the financial position of a business and project future results.

I built this course using multiple reliable resources in Accounting. The content is based on U.S. GAAP Accounting standards, I also used my own knowledge and experience which I earned throughout my career for more than 15 years. Currently, I am working as Finance Manager in a contracting company. At the same time, I like to teach and share my knowledge with everyone interested in Accounting. It took me two years to make this content available for you, I made sure each information is valid and trustworthy.

This course will walk you through all the basics of Accounting for proprietorship companies which are owned by one individual or entity. We will start with the basics from scratch for service companies, and then all the way up to merchandising operations including major topics of inventory costing, cash and cash equivalent, trade receivables, plant assets, natural resources, intangibles, and basic financial analysis. After each section, I will practice with you a complete exercise. Together, we will learn and practice the details step by step. There are also seven quizzes available to test your understand.

Course Content

This course is comprehensive, it covers the basics of Accounting as follow:

• What is Accounting? And how it identifies, record, and report financial events.
• Who are the users of Accounting? That include both internal and external users.
• What is GAAP? And why it is important to follow Accounting standards in recording and reporting financial data.
• Basic concepts of Accounting including historical cost, accrual basis, matching principle, and much more!
• Accounting equation, and it represent how assets are financed by both liabilities and owners’ equity.
• Debits and credits and double-entry system.
• Chart of accounts.
• Journalizing, posting, trial balance.
• Adjusting entries for accruals and deferrals.
• Closing entries and post-closing trial balance to close the period.
• Prepare financial statements including income statement, classified balance sheet, and statement of changes in equity.
• Accounting for inventory purchases and sales using perpetual system.
• Closing entries in merchandising operations, and how it is different than closing entries for service companies.
• How multiple-step income statement is required for merchandising companies.
• Inventory costing methods including specific identification, first-in first-out, last-in first-out, and weighted average method.
• Inventory valuation using “lower of cost or market (LCM)”.
• What is cash and cash equivalent? And how to account for restricted cash, bank overdrafts, and petty cash.
• How to prepare bank reconciliation.
• What are the types of receivables?
• Valuing account receivables using direct write-off, and allowance methods.
• Notes receivable and how to record & report them.
• How to determine the cost of plant assets?
• What is depreciation, depletion, and amortization?
• Methods of depreciation including straight-line, units-of-activity, and declining-balance methods.
• How to account for natural resources and intangibles?
• Basic financial statements analysis using both vertical and horizontal analysis.