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Accounting Fundamentals

Go from zero to writing correct journal entries, producing financial statements, and closing a month. No prerequisites, no degree assumed.

5 hr 9 min · 7 modules · 30 lessons

Course content

1. 1 What Accounting Actually Does

   The mental model everything else in the course hangs on.

   1. Why businesses keep books7 min

      Name who reads financial information and what decision each reader makes with it.

   2. The accounting equation10 min

      State Assets = Liabilities + Equity and explain why it cannot break.

   3. Accounts and the chart of accounts8 min

      Classify any account into one of the five types.

   4. Every transaction has two sides10 min

      Identify both accounts affected by a plain-language transaction.

2. 2 Debits and Credits

   The mechanic that decides who passes. Given the most time on purpose — conventional courses rush it and lose people.

   1. Why "debit" doesn’t mean decrease · not yet written8 min

      Explain why bank-statement language is the opposite of bookkeeping language.

   2. The rules by account type · not yet written12 min

      State which side increases each of the five account types.

   3. T-accounts · not yet written10 min

      Track an account’s balance using a T-account.

   4. Writing journal entries · not yet written12 min

      Write a balanced journal entry from a transaction description.

   5. Practice: ten transactions · not yet writtenlab15 min

      Write ten journal entries without prompting.

3. 3 The Ledger and the Trial Balance

   Turning a pile of entries into something a person can read.

   1. Posting to the general ledger · not yet written10 min

      Post journal entries to the correct ledger accounts.

   2. Working out account balances · not yet written8 min

      Compute an account’s ending balance and say which side it sits on.

   3. Building a trial balance · not yet written10 min

      Produce a trial balance from a ledger.

   4. When it doesn’t balance · not yet written10 min

      Apply the divide-by-9 and divide-by-2 checks to locate an error.

4. 4 Accrual Accounting and Adjusting Entries

   The conceptual leap from watching a bank account to measuring a period.

   1. Cash basis vs accrual basis · not yet written10 min

      Say when revenue is recognized under each basis.

   2. Revenue recognition and matching · not yet written10 min

      Apply the matching principle to place an expense in the right period.

   3. Accruals: earned but unrecorded · not yet written12 min

      Write accrued revenue and accrued expense entries.

   4. Deferrals: paid but not yet used · not yet written12 min

      Write prepaid expense and unearned revenue entries.

   5. Depreciation · not yet written10 min

      Compute straight-line depreciation and write the entry.

5. 5 Financial Statements

   The output everyone outside the books actually reads.

   1. The income statement · not yet written10 min

      Build an income statement from an adjusted trial balance.

   2. The balance sheet · not yet written10 min

      Build a balance sheet and confirm it balances.

   3. The statement of cash flows · not yet written12 min

      Explain why profit and cash differ, and name the three sections.

   4. How the three connect · not yet written12 min

      Trace net income into retained earnings and into the statement of cash flows.

6. 6 Closing the Books

   The monthly rhythm of the job.

   1. Closing entries · not yet written10 min

      Explain why temporary accounts reset and write the closing entries.

   2. The post-closing trial balance · not yet written7 min

      Verify that only permanent accounts remain.

   3. The month-end close checklist · not yet written12 min

      Sequence the steps of a monthly close.

   4. Bank reconciliation · not yet written12 min

      Reconcile a bank statement to the cash ledger.

7. 7 The Work in Practice

   What the day actually looks like, and where the track goes next.

   1. Accounts receivable · not yet written10 min

      Record invoicing, payment, and a write-off.

   2. Accounts payable · not yet written10 min

      Record a bill and its payment, and read an aging report.

   3. A bookkeeper’s actual week · not yet written10 min

      Describe the recurring rhythm of the job.

   4. Where this goes next · not yet written10 min

      Explain what course 2 automates and why the fundamentals still matter.