This guide for students learning accounting principles. This also is helpful for entrepreneurs that want to have a better grasp of financial accounting concepts.
This guide is organized by topics typically covered in an introductory financial accounting textbook. It covers the material in the following college courses:
- Financial Accounting
- Principles of Accounting I
- Intermediate Accounting
Managerial accounting topics are on a separate page. See The Ultimate Guide to Learn Managerial Accounting.
Lesson 1: Introduction to Accounting
Lesson 1: Introduction to Accounting
Accounting is a financial system that records transactions in accounts.
The five types of accounts are:
Assets – economic resources owned by a company
Liabilities – debts of the company; what the company owes
Equity – claim on the assets by the owners; calculated as assets – liabilities = equity
Revenues – when a company receives assets from selling a product or service
Expenses – when a company uses or consumes assets
There are three financial statements that each company prepares. The financial statements are:
Income Statement – Revenues minus expense equals net income or net loss
Balance Sheet – lists all the assets, liabilities, and equity of a company
Cash Flow Statement – cash inflows and cash outflows
Lesson 2: Recording Business Transactions
Lesson 2: Recording Business Transactions
Recording transactions in accounting uses a system called debits and credits. You need to learn the accounts and how to make journal entries into the accounts.
We use the debit and credit rules to record business transactions. These are called journal entries.
We use the debit and credit rules in recording transactions. All the transactions are recorded in a journal. A journal shows all the transactions.
See Debits and Credits Explained: A Helpful Illustrated Guide.
Lesson 3: Adjusting Entries
Adjusting entries are entries made at the end of the period to update the accounts.
Lesson 4: Merchandising Companies
Lesson 5: Inventory
Lesson 6: Time Value of Money
Lesson 7: Cash
Lesson 8: Receivables
Lesson 9: Long-term Assets
Lesson 10: Investments
Lesson 11: Current Liabilities
Lesson 12: Long-Term Liabilities
Lesson 13: Stockholders’ Equity
Financial Accounting Lessons
We have many resources for Financial Accounting. This works for students learning principles of accounting or financial accounting.
For all the lessons see The Ultimate Guide to Learn Financial Accounting
Here are the lessons:
- Introduction to Accounting
- Recording Business Transactions
- Adjusting Entries and the Accounting Cycle
- Accounting for Merchandising Activities
- Time Value of Money
- Inventory
- Cash
- Receivables
- Long-term Assets
- Investments
- Current Liabilities
- Long-term Liabilities
- Stockholders’ Equity
