Welcome to Financial Accounting! This course is being designed to introduce the basic skills needed to build a foundation for the field of accounting. As with all Wikiversity courses, this is a continual joint collaboration among numerous sources, so please check back at regular intervals for updates and new material. Also, please feel free to use the discussion tab at the top of the page for any questions, comments, concerns, or ideas concerning this course.
Financial Accounting will be divided into sessions, each on its own page. Each session is meant to represent the material that would normally be consumed in a single classroom period.
If you are an accounting whiz, we invite you to Be bold!
None. This course assumes no prior knowledge of accounting or finance.
Goals and Objectives
By the end of this course, you will be able to:
- Explain what the different branches of accounting are why they are important.
- Describe and use various terminology used in the field.
- Describe and identify when to use accrual vs. cash accounting.
- Read and analyze a set of financial statements.
- Explain double entry accounting and the "accounting equation".
- Perform basic double-entry accounting entries using T-accounts.
- Perform end-of-period closing entries.
- Describe the accounting cycles.
Textbook and required readings
The Wikibook Accountancy will be a reference throughout the coursework.
How to use this course
This course is a work in progress and will, hopefully, be updated and improved continually. Education typically consists of three components: a lecture, class discussion and problem solving. The lecture component can be accessed through the links below under the "Sessions" heading. Some of the lectures consist of links to other sites to prevent re-inventing the wheel. The class discussion component can be accessed at the top left of the screen in the link "Discuss". The problem solving component will be in each of the sessions.
Use this course on its own to brush up on your skills or as a complement to course work you've been given.
- Session 1: Basic Principles and Concepts
- Session 1 will focus on the overriding principles, basic ethics, and fundamental concepts of accounting
- Session 2: Accounts
- Session 2 focuses on the Chart of Accounts, T-Accounts, Journals and Ledgers.
- Session 3: Double Entry Bookkeeping
- Session 3 will focus on the accounting equation, balance sheets, Double entry system for assets, capital and liabilities, Stock control. It will also discuss the effect of profit and loss on capital, revenues and expenses. You will learn how to balance accounts and begin to understand a Trial Balance
- Session 4:The Financial Statements of Sole Proprietors (to be added soon)
- Learn how to close revenue and expenditure accounts for preparation of financial statements for sole proprietors. How to adjust purchases with stock and calculate cost of goods sold. Understand the difference between gross and net profit. How to transfer net profit and drawings to the capital account and year end.
- Session 5:Books of Original Entry (to be added soon)
- Session 6:Adjustments for Financial Statements (to be added soon)
- Session 7:Special Accounting Procedures (to be added soon)
- Session 8:Partnership and Company Accounts (to be added soon)
- Session 9:Financial Analysis Introduction (to be added soon)
- Session 10:Other Topics (to be added soon)
The following sessions will correspond to the numbered objectives in this syllabus.
- Session 1 What do we mean by accounting?
- Session 2 Put the what in the where?
- Session 3 Cash or accrual?
- Session 4 What is the point of all this?
- Session 5 For every entry, there is an equal and opposite entry.