Fundamentals of accounting

This free course, Fundamentals of accounting, will introduce you to the essential concepts and skills of bookkeeping and accounting in four weeks. To start with you will learn about the fundamental difference between bookkeeping and accounting. In Week 1 you will also learn how the purpose of management accounting differs from that of financial accounting. In Week 2 you will gain some practical skills in numeracy, including learning about rearranging simple equations such as the accounting equation. In Week 3 you will gain knowledge and understanding of the fundamental concepts that underpin double-entry accounting. You will also learn the rules of double-entry bookkeeping and how to record transactions in ledger accounts. In the fourth and final week you will learn how to prepare a trial balance and the balance sheet (also known as the statement of financial position). In the final week you will also be introduced to the income statement (also known as the profit and loss statement) and how it fits with the accounting equation and the balance sheet.When you complete the course you'll receive a free statement of participation to help you to share your achievement.

• Week1Week 1: The purpose and role of bookkeeping and accounting
• Introduction
• 1.1 Bookkeeping and accounting
• 1.2 The four fundamental financial questions
• 1.3 Income and expenses in accounting
• 1.4 Capital in accounting
• 1.5 Financial and management accounting
• 1.5.1 The key differences between financial and management accounting
• Summary of Week 1
• Acknowledgements
• Week2Week 2: Essential numerical skills for accounting
• Introduction
• 2.1 Mastering accounting numeracy
• 2.2 Use of BODMAS and brackets
• 2.3 Use of calculator memory
• 2.4 Rounding
• 2.5 Fractions
• 2.6 Ratios
• 2.7 Percentages
• 2.8 Negative numbers and the use of brackets
• 2.9 The test of reasonableness
• 2.10 Table of equivalencies
• 2.11 Manipulation of equations
• 2.11.1 Manipulation of formulae
• Summary of Week 2
• Acknowledgements
• Week3Week 3: Double-entry accounting
• Introduction
• 3.1 The essential concepts behind double-entry accounting
• 3.1.1 The business entity concept
• 3.1.2 The accounting equation
• 3.1.3 The duality principle in practice
• 3.2 The system of double-entry accounting
• 3.2.1 Following the double-entry rules
• 3.2.2 Recording transactions using T-accounts
• Summary of Week 3
• Acknowledgements
• Week4Week 4: Preparing the trial balance and the balance sheet
• Introduction
• 4.1 From T-accounts to the trial balance
• 4.2 The T-accounts before their balance is worked out
• 4.2.1 The procedure for balancing off T-accounts
• 4.3 The trial balance
• 4.4 The balance sheet
• 4.4.1 Preparing a balance sheet
• 4.5 The effect of profit on the accounting equation
• Summary of Week 4
• End-of-course conclusion
• Acknowledgements